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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.” Conversely I offered the same deal to another entrepreneur who decided to shop around longer. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever.