Tag: seed capital
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Accelerator Mentors over Money (and Office Space)
With the success of Y Combinator and TechStars, several accelerators have popped up everywhere. Some have done quite well. Here in Dallas,Tech Wildcatters had a strong class recently and is poised to be around for awhile. They key for each is good programming and good accelerator mentors. But this morning I read a Dallas Business Journal article…
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How to Set a Convertible Note Discount
A convertible note discount is one of the main economic levers in a convertible promissory note. Notes typically do not include a stated pre-money valuation. Instead, the note converts into equity in a later priced financing (often a Series A), and the conversion price is usually based on the price paid by new investors in…
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How Convertible Debt Works
Convertible debt is a type of security frequently issued by startups when raising capital in their seed round. With convertible debt, the startup issues the seed investor a promissory note, for the investment amount, that contains a conversion feature. The conversion feature is the mechanism by which the debt (the promissory note) will convert to…