uncapped note

also referred to as: uncapped notes

5 statements across 5 episodes · 1 bullish · 4 bearish · 4 people on the record · first statement Jun 27, 2016 by David Cohen · across every show →

Everything said about uncapped note, oldest first

Jun 27, 2016 negative
What-if
Cohen: Techstars returns would be 5x lower if using uncapped notes
“Had all the investments we've done been uncapped notes, it's something like a five X, you know, lower return.”
David Cohen Jun 27, 2016 ▶ 15:39 20VC: Techstars Founder, David Cohen on Scaling Techstars Ventures and Investing In Uber, Twilio and Sendgrid
Apr 10, 2017 negative
Insight
Naval Ravikant: Investors cannot make money on uncapped convertible notes
“So, for example, some entrepreneurs have gotten very good at raising uncapped notes, but you can't make money on that.”
Naval Ravikant Apr 10, 2017 ▶ 7:06 20VC: AngelList's Naval Ravikant on The Secrets To Success At Seed, Why Micro VC Is The Return of Traditional Series A & Why We Will See The Unbundling Of Traditional VC Brands
Oct 5, 2022 negative
Insight
Lewis: Deploying capital via uncapped notes is not real investing
“Uncapped notes aren't actually investing. That's why I hate them. Investing is You know, you should know the price you're paying. That's what an investment is. It's not an investment if you don't know what the price you're paying is for the security.”
Geoff Lewis Oct 5, 2022 ▶ 24:06 Geoff Lewis: Why I Put $200M into Rippling; Uncapped Notes; "Compound Startups" | 20VC #933 · 20VC with Harry Stebbings
Oct 14, 2024 positive
Assertion Not publicly verifiable
Frankel: First Round Capital offered uncapped checks to top portfolio companies
“Josh Koppenman, I remember him saying to me, I'll give you two million dollars uncapped note ahead of the next round. A lot of this was in his portfolio already, where he went, like, what's the quadrant that's really killing it? What first round used to do is,…”
David Frankel Oct 14, 2024 ▶ 20:54 David Frankel, MP @Founder Collective: Investing Lessons from Seeding Coupang, Pillpack & Suno|E1214 · 20VC with Harry Stebbings
Aug 7, 2026 bearish
Opinion
Frankel: Uncapped Convertible Notes Suck at the Seed Stage
“I mean, the scale of how much you have to win, right, is different based on your price. It's pure math. So, uncapped notes suck at the seed stage.”
David Frankel Aug 7, 2026 ▶ 9:26 The AI Boom Will Create Enormous Roadkill: Who Wins & Loses? | David Frankel
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