From: | JH |
Sent on: | Thursday, November 21, 2013, 9:40 PM |
Every F&F round I've seen has been structured as a Convertible Note that gives a discount (on conversion) on top of the standard interest rate. It's a much cheaper way to get money in and generally keep interests aligned. There is minimal legal work do be done, because you defer all the annoying stuff ( valuation, stock issuance, misc terms, etc) until the real financing round.
On Nov 21, 2013, at 9:59 AM, Anthony Zeoli wrote:
> We talk a lot about fundraising here, but rarely do we talk about structuring a friends and family round. What are the pros and cons? Any examples of agreements? How do you structure this and how does it affect funding later on so it doesn't get messy for experienced seed or series A rounds later? Does the SEC have rules around this?
This message was sent by Jonathan Vanasco ([address removed]) from NY Tech Meetup.
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