The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand
Both Sides of the Table
SEPTEMBER 5, 2012
This has worked very well in the 2009-2012 time frame because the tech market has boomed in this period. So Investor A might have bought 20% of your company in 2012 and in 2013 with no addition money invested suddenly owns 40% of your company. What happens in a sale or acqui-hire? So you’re taking all of the pricing risk.
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