I hate that title, but it’s Saturday night and I’m feeling saucy.
Suster posted a rant about convertible debt vs equity. Fred followed up. Everybody’s weighing in. McClure jumped in and dropped his pants, and the place went nuts and then it spilled over onto Twitter.
I can’t stop commenting about it, which makes me a very poor participant in the conversation (or a great one). I’m almost a troll at this point.
My last comment was reflective, and I think it nails it.
I don’t know why I’m so obsessed with this topic but I am. Maybe it’s because in some ways it’s about fairness.
the one thing the post and many of the comments don’t consider is CONTEXT.
If I’m a hot deal in NY or SOMA, maybe I can raise and close an angel round in a few weeks. That’s perfect because my team isn’t worried about missing mortgage payments or phone bills just yet.
But if I’m not in the inner circles and in the hotbed, if I’m in, say, Lancaster, PA, or BumbleFuck Kentucky (hi andy!), my fundraising isn’t quite that efficient. Sometimes it takes months.
So, context matters to deal structure.
Convertible Debt: for founders who need a rolling close so the cash can come in as it’s raised.
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