What’s the best way to raise in convertible notes or in your priced equity round?

Yokum Taku (Corporate and Securities Partner @ Wilson Sonsini Goodrich & Rosati)
Should a startup company raise its seed round using a convertible note or Series A Preferred Stock?

Generally speaking, I think that the founders of a startup company are probably better off with a convertible note financing over a Series A financing in a seed round for a couple of reasons. 1. A convertible note avoids setting a valuation for the company. 2. Convertible note documents are simpler than a Series A. That being said, I think that there are two principal reasons to dislike convertible debt from the founders’ perspective. 1. Converti… (read more)