High Resolution Fundraising
September 2010The reason startups have been using more convertible notes in angel rounds is that they make deals close faster. By making it easier for startups to give different prices to different investors, they help them break the sort of deadlock that happens when investors all wait to see who else is going to invest.By far the biggest influence on investors' opinions of a startup is the opinion of other investors. There are very, very few who simply decide for themselves.
- ▪September 2010The reason startups have been using more convertible notes in angel rounds is that they make deals close faster.
- ▪By making it easier for startups to give different prices to different investors, they help them break the sort of deadlock that happens when investors all wait to see who else is going to invest.By far the biggest influence on investors' o
- ▪There are very, very few who simply decide for themselves.
Paul Graham — Essays files mainly under blogs. We currently carry 219 of its stories.
Opening excerpt (first ~120 words) tap to expand
Want to start a startup? Get funded by Y Combinator. September 2010The reason startups have been using more convertible notes in angel rounds is that they make deals close faster. By making it easier for startups to give different prices to different investors, they help them break the sort of deadlock that happens when investors all wait to see who else is going to invest.By far the biggest influence on investors' opinions of a startup is the opinion of other investors. There are very, very few who simply decide for themselves. Any startup founder can tell you the most common question they hear from investors is not about the founders or the product, but "who else is investing?"That tends to produce deadlocks.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Paul Graham — Essays.