throwawayuc

Re:Ask HN: Our 1-month-old wine startup just raised a huge round at a ... on Tuesday November 05, 2013 @10:40PM (#6680481)

Wow great post - good luck finding the right person. If I was 10 years younger and no wife I'd be moving right in with you guys. Sounds like the perfect startup culture

Re:Ask HN: Was I just offered horrible convertible note terms? on Thursday April 04, 2013 @01:51PM (#5494049)

It means if another future investor makes an investment where the pre-money valuation of the company is LESS THAN $4MM (like, $350K for 10%), then the initial investor's shares would convert at 1.25x the rate of the new money coming in. So new investor would get 10% for $350K while past investor's convertible note would convert to 12.5%.

Re:Ask HN: Was I just offered horrible convertible note terms? on Wednesday April 03, 2013 @09:48PM (#5490479)

I've got a team of 8 full time people (half are salaried and half are only commission). We're hemorrhaging cash as we roll out our marketing plan. Plus we have features on our site like "Refer a friend, earn $10 when their first order ships." That money has to come from somewhere.

My only other option is to get as many personally-guaranteed credit cards as I can and just use them instead of taking on an investor. But this seems more high-risk.

Ask HN: Was I just offered horrible convertible note terms?

Posted by throwawayuc on Wednesday April 03, 2013 @09:06PM
from the ask-hn dept.

Was just offered $120K investment w/ a $500K cap; and 25% discount.Some background: This is my first time taking money for my startup, so I ran it by my "silicon valley advisor" (a buddy from college who runs a notable tech startup in SV). I asked him what he thought of the terms, and he said that they are the most entrepreneur-unfriendly terms he has ever seen. His main concern was how low...

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