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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: askjay@revision3.com, @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
Have questions about launching a business that you want answered? Submit them to askjay@revision3.com, or upload a video question on our YouTube page. And make sure and follow Jay via Twitter.
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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