What vehicle should startups use for seed stage fundraising?

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Why do you recommend Series Seed?

Why do you not recommend Series Seed?

Equity rounds result in an investor being issued stock in exchange for money at a given valuation. In a nutshell, the investors will agree to a sing...

When you set the price, both sides know what deal they got.

Contrary to the trend of convertible notes with variable pricing, there is actually an advantage to a single price for the deal. From Fred Wilson'...

Simplicity

From SeriesSeed.com:The Series Seed Documents are only 30 pages in the aggregate so that an entrepreneur can read and understand them without devoti...

No cons added yet

Why do you recommend Convertible note?

Why do you not recommend Convertible note?

Convertible notes are a form of debt that converts into equity given a certain trigger, usually a second round of financing.

Does not give up control to investors

In a typical convertible note deal investors do not gain any control over the company. There are usually no control provisions or board seats attach...

Variable pricing

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The biggest advantage to convertible notes is the ability to easily give different investors different prices. This provides two very important benef...

Full Rachet on down rounds

If a convertible note has a cap and a conversion discount it can be very painful for the entrepreneur on a subsequent down round. From Mark Suster:A...

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Why do you recommend Convertible Equity?

Why do you not recommend Convertible Equity?

Convertible equity is a form of early-stage bridge funding that allows a startup to sell to investors a form of equity security that in many ways res...

No Complex Interest Terms

With convertible equity there is no interest paid on the round. This saves the entrepreneur equity and simplifies future fundraising.The lack of com...

Helps Investors Gain Tax Benefits

Convertible equity financings will help Angel investors reap tax benefits through capital gains discounts.

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