Convertible Note

“We never did a price valuation. We did convertible notes. so beyond that, I have not really pulled any money in the last four years, three years.”

“Technically a convertible note actually is debt. It is technically an IOU, and sometimes there's this option to take your money back plus interest, and that can often harm the company if, you know, you're raising a lot on convertible notes. So I think the deta…”

“It can often feel like free money until it converts, and then you're trying to figure out all these notes with different caps, and different discount rates, and different interest accrued. Yeah. And all of a sudden you realize you sold off more of your company…”

“The terms that we've raised 1.5 on to date are 25 K minimum and eleven million pre money value cap.”

“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.”

“The nice thing about Morning Brew is we only raised one round of funding ever. We raised 750 K on a convertible note while we were it was actually right after I quit my job at Morgan Stanley and we raised from 28 individual investors. There's 28 individual che…”

“It's super, super easy, especially when the market is hot, but even when it's not, super easy to raise on convertible note.”

“In Switzerland, when you use notes, it's rather very small notes, like 20 to 25,000. So you would have to raise a lot of notes and that makes it very complicated.”

“It was a cap and a, on a convertible note and the cap was 10.”

“We raised we raised the note round early on in our existence in July of 18. That was a 1.25 million”

“And then we did a convertible note this year, just getting up to a bigger round. No, I was only on a discount on the next round.”

“Most of the early stage instruments, convertible notes and safes really are orientated around the idea that you will raise another round. And if you don't raise another round, They either do stuff that's, you know, not great, like accumulate interest indefinit…”

“So we had an interesting trigger in our convertible note where once we hit a certain revenue threshold, the ability for me to pay back went away.”

“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.”

“And a convertible note is a kind of debt as well, although we don't recommend you use convertible notes anymore.”

“Convertible notes are not common here.”

“Which is tricky, and I would not recommend it for other folks, which is why when I raised my money for the biotech company afterwards, we only took in one investor.”

“I think that's also starting to the sun's setting on a little bit of those sort of open note raises”

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

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

“It was a convertible note round. Two million note was what we issued.”

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

“1.1 million. Priced. Yeah, yeah. No, no, it was a convertible note. So we've actually done like four rounds of notes, which is something shocking to me.”

“In Snapwire's world, we raised venture debt, so convertible notes. We have never done a price round.”

“About 1.15 million or so.”

“If you can price something and price it now, it gives you something to work from and gives you more stability because you never know when your next financing round is going to come. And you should always assume that you're on your own with the cash you have al…”

“We're raising about 1.5 million on a note.”

“No, it's a little bit more simple than that, so we're just doing a cap and no discount, no interest.”

“It's never been a better time to start a company. I mean, if you're like a little smart and you have kind of an idea, preferably a problem you're solving for yourself, it's never been better because the fact that angels are willing to do these convertible note…”

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

“But it needs to be converted typically within 12 months.”