Re:Terms of Yuri Milner/SV Angel’s $150K investment into YC ...
by sachinag on Monday January 31, 2011 @08:41PM
(#2164057)
OK, so in practice, what happens if the company can't raise a round? Do they just return what they can to the fund and close up the doors?
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Re:Terms of Yuri Milner/SV Angel’s $150K investment into YC ...
by yokumtaku on Monday January 31, 2011 @08:49PM
(#2164079)
The note stays outstanding. Generally speaking, there's no good reason for the investor to want to convert into equity, as debt is better in a bankruptcy situation.
Some companies might return money to investors before shutting down.