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951

Convertible and SAFE notes

Angel/seed rounds used to be done via priced equity securities, either common or preferred. Then, starting about ten years ago, we started to see convertible debt being used in the angel and seed rounds. By 2010 this was the norm and Paul Graham tweeted this in Aug 2010: Convertible notes have won. Every investment so…

953

Startup School – YC’s Online Class

[https://ycombinator.wpengine.com/wp-content/uploads/2017/03/SSYC_Logo.png] We’re excited to announce our new online Startup School, with classes beginning on April 5. Anyone can sign up at StartupSchool.org [http://startupschool.org/] for the 10-week massively open online course (MOOC), starting today. We want to…

954

Dilution

There has probably been more capital looking to invest in private technology companies in the past five years than any five-year period before. An obvious consequence of this increased supply is that company valuations (i.e. prices) have gone up, and so has the amount of capital raised by most companies. A non-obvious…