Ask Jay

Hosted by Jay Adelson.

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: askjay@revision3.com, @jayadelson, or http://youtube.com/askjayadelson Read More

Convertible Notes

Tuesday, November 1st, 2011 – running time 07:04

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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

Convertible Note or Traditional Round

-Find out what your investors want

-Don't worry about small percentages at this early stage

04:44 | Play

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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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About the Show

Details
Show Title:
Ask Jay
Description:
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing tips and answering questions. Ask Jay how to turn business ideas into reality!
Categories:
How-To & DIY, News & Politics, Technology & Gadgets
Launch Date:
Aug 9, 2011
Episodes: