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Bad Notes on Venture Capital

Both Sides of the Table

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?

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Time is the Enemy of All Deals

Both Sides of the Table

A reminder that it is important for all entrepreneurs is to remember to be careful about “deal drift.” Morgan Stanley then funded one of our competitors. Had I delayed my fund raising in 99/00 by even 3-4 weeks I’m convinced I would not have raised any money at all. Morgan Stanley had proposed a higher valuation to let them in.