convertible note

also referred to as: convertible notes

6 statements across 6 episodes · 1 bullish · 4 bearish · 6 people on the record · first statement May 23, 2016 by Manu Kumar · across every show →

Everything said about convertible note, oldest first

May 23, 2016 negative

Disclosure

Kumar: K9 Ventures refuses to invest using convertible notes

“And I walk away from deals all day long based on price and structure, so I also don't do convertible notes.”

Manu Kumar May 23, 2016 ▶ 12:06 20VC: K9's Manu Kumar on His Approach To Risk, Valuation & Believing What Other People Don't

Sep 4, 2017 neutral

Opinion

Convertible notes and SAFEs are like alcohol: use only in moderation

“Oh, they're okay, but it's kind of like alcohol, and it should only be used in moderation.”

Phil Black Sep 4, 2017 ▶ 19:19 20VC: True Ventures Founder, Phil Black on 4 Major Risk Categories for Startups, Why The Funding Gap Is At The "Rational B" Round & Why VCs Must Start Small But Think Big

Nov 15, 2017 positive

Prediction Not checkable as stated

SAFEs and convertible notes are the new wave of investing

“I like them a lot. I think actually this is the new wave of investing.”

Elizabeth Yin Nov 15, 2017 ▶ 22:50 20VC: Why VCs Fundamentally Assess Founders The Wrong Way, Why VC Needs To Innovate On The Scouting Model & Why SAFE's and Convertible Notes Are The Future Of Investing with Elizabeth Yin, Founder & General Partner @ Hustle Fund

Nov 29, 2017 negative

Opinion

Waxman: Convertible notes make absolutely no sense for multi-million dollar rounds

“But when you get into a multi-million dollar round, I think that convertible notes make absolutely no sense at all.”

David Waxman Nov 29, 2017 ▶ 11:21 20VC: Why Convertible Notes Are Ridiculous, Why Party Rounds Are Bad For Both Founder and Investor & Why Pro-Rata Rights Are A Mess with David Waxman, Founding Partner @ TenOneTen Ventures

May 27, 2019 negative

Insight

Ralston: Debt notes were poorly suited for early-stage angel investing

“Debt was not a great model for this. It was sort of an accidental thing that were, that was used for bridge rounds, and it wasn't really meant for angel, for equity investing, and that's why we moved from convertible notes to safes.”

Geoff Ralston May 27, 2019 ▶ 25:45 20VC: Y Combinator's New President, Geoff Ralston on The Single Most Important Perspective An Investor Can Provide A Founder, The Biggest Lessons From Working Alongside Paul Graham & Why You Will Lose As An Investor If You "Profile Invest"

May 8, 2024 negative

Assertion Supported

Hulme: Priced rounds are declining as founders avoid valuation write-downs

“Oh, I think we're seeing that firstly price rounds are less common because people aren't willing to accept the new and fair valuation. So you get convertible notes.”

Tom Hulme May 8, 2024 ▶ 7:16 Tom Hulme: Lessons from a 24x Angel Track Record, 275x on Robinhood & Making Billions on Uber |E1150 · 20VC with Harry Stebbings

convertible note

Everything said about convertible note, oldest first

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