Why don't convertible notes in the friends in family scenario just set a multiple that will be suitable in the case equity is diluted? In this case it seems the main interest in supporting an entrepreneur they believe in and getting their money back - ideally at a better return than they'd get elsewhere. For example, would a 2x return on a convertible note pose any real problem to investors in subsequent rounds?
Glad to see so much discussion about it. After taking Venture Deals with Brad Feld and Jason Mendelson through Kauffman Fellows Academy / Novoed, I'm quite curious about trends on this topic.
Why don't convertible notes in the friends in family scenario just set a multiple that will be suitable in the case equity is diluted? In this case it seems the main interest in supporting an entrepreneur they believe in and getting their money back - ideally at a better return than they'd get elsewhere. For example, would a 2x return on a convertible note pose any real problem to investors in subsequent rounds?
Glad to see so much discussion about it. After taking Venture Deals with Brad Feld and Jason Mendelson through Kauffman Fellows Academy / Novoed, I'm quite curious about trends on this topic.
Glad to see so much discussion about it. After taking Venture Deals with Brad Feld and Jason Mendelson through Kauffman Fellows Academy / Novoed, I'm quite curious about trends on this topic.