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Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips, and answering questions. Ask Jay how to turn any business idea into reality: firstname.lastname@example.org, @jayadelson, or http://youtube.com/askjayadelson Read More
Successful entrepreneur and CEO, Jay Adelson, demystifies the start-up process by providing advice, tips, and answering questions. Today he explains what a convertible note is in an early funding round along with why to consider to offer them to investors or not.
Jay's Chalkboard Notes - Convertible Notes:
- A promise of stock on the next round of capital
- Stock provided at a discount
- Pro: allows for a round of capital without giving away a percentage of the company
- Con: It can affect the outcome of future investment rounds
- Keep things simple
- Sell a small part of your company for your first round of capital
- Angels tend to prefer traditional rounds
-Find out what your investors want
-Don't worry about small percentages at this early stage
About Ask Jay
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world.
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