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A comment on "Convertible Equity" - A Better Alternative to Convertible Debt?.
So you "loan" money in exchange for "equity" and you limit the potential return on that money if the seed round is larger than a particular valuation.
It feels like a priced equity round that is held to just before the price gets set by the lead investor.
Why would I do this rather than price it? Or perhaps more importantly at the seed round stage how does this affect the LP's ownership calculation?
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So you "loan" money in exchange for "equity" and you limit the potential return on that money if the seed round is larger than a particular valuation.
It feels like a priced equity round that is held to just before the price gets set by the lead investor.
Why would I do this rather than price it? Or perhaps more importantly at the seed round stage how does this affect the LP's ownership calculation?