The danger with convertible notes
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- čas přidán 27. 07. 2024
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To get to Unicorn status, companies often raise multiple funding rounds: it's impossible to grow that fast without external capital. Those rounds are often called Seed, Series A, Series B, Series C, etc.
Now, the first round startups raise, is often structured as a convertible note. The problem is convertible notes (or bridge rounds as they are often called) are designed for these startup stories, and there are many stories in the middle where convertible notes can become a hassle.
We are one of them, and in this video, we'll tell you all about it.
Here's the danger with convertible notes.
#startups #Slidebean #fundraising
0:00 - Intro
0:32 Failure vs. Unicorn
2:42 Rules of a convertible note
5:31 The 2017 decision
7:19 The 2020 decision
9:09 The middle ground problems
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Read the video transcription + sources: slidebean.com/blog/startups-d...
Follow Caya: / cayahere and / caya_here - Věda a technologie
"A billion dollar company must be doing something right."
Elizabeth Holmes Enters the Room:
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Well the thing they did right was hire good fraudsters.
lmao!
🤣🤣
This channel deserves millions of subscribers.. and i mean it
Getting there! :)
Hitting 200k real soon 🙌🙌💯
No lies detected! Caya is a great guy! Love n Respect man.
You guys Deserve a much much greater audience. Thank You for providing so much value in your videos.
They’ve actually grown quite a bit these past few months, at almost 200k subscribers. WOOOO 🥳🥳🥳
Can you please make a video about legal side of a startup, things to take care of while raising funds and how to make your own legal team, and if a startup needs a legal team
Yes, @slidebean Plz make video on this topic..
Yes!
I think it's hard to have this type of content since every country has their own laws or regulations about every type of businesses or start-ups.
I can feel the stress in your voice. Funding in startups is brutal!
Ikr I felt anxious watching this
Your story seems statistically more relevant for most startups rather than the unicorns since most startups will either fail or become profitable but wont become unicorns. Thanks for the video! Muchas gracias!
Love this one... You're right. No body wants talks about this middle ground.
I always love your videos, about how honest and frankly speaking the CEO, about the contents ideas, to the videography. You guys are deserve larger audience. Keep doing it, i know your CZcams channel is giving valuable means for people out there. I hope also there would come more traction for slidebean as it continues to share informative videos on CZcams thus more people notice your company and product 😁😉
This is awesome. Thank you for sharing your story. We tend to lose sight of the fact that to be profitable is an option. Venture funding is seen as a silver bullet by many but while it is silver it is also a bullet and can kill the business.
always pumped for your premieres 😃🙏🏻
Thanks for watching!
Slidebean: Startups 101 thanks for the quality content!
I wanted to say I've turn into an angel investor after my previous exit and your channel has taught me a lot about angel investing. Thank you so much!
Some of the most thoughtful insight around outcomes for a startup. Not everyone becomes a Unicorn. Keep up the good work guys!
Just discovered your channel and subscribed. Really impressed by your videos, clarity, intelligence and energy. Wishing you every success in your business ventures and goals, well deserved and I'm sure you'll attain it!
The amount of quality information you are providing on this channel worth infinite. You guys deserve more audience/subscribers and customers too :p.
no other way to say this, you are an inspiration. this is awesome
Man, i had a meeting with caya before. Our team is almost ready with our MVP, and we are receiving a really early money that we need to start our business. And i think this is a perfect advice that we needed! Thx caya
Best startup content ever!!!
Hi from the Dominican Republic. 🇩🇴🇩🇴
And thanks for all that information, it really helps.
As always Caya, amazing.
Kudos slidebean team, I'm on the lifetime plan and loving it.
Thank you. Great stuff. Doing a raise. Going the SAFE way.
Terrific content! I hope you create more such videos which aren't sensational but are more practical. Keep 'em coming
As always, great content and delivery @Caya!
Super insightful. Thanks for sharing!
Thanks Caya
Thanks for sharing the knowledge!
Thank you. Excellent video.
Such a good explanation!
Absolutely insightful
Always bringing the goods my man
Hoping a Startup Forensics video of Quibi is coming up! Love the work as usual ❣️
Awesome video! Thanks Caya and good luck slidebean. Will definitely use slidebean services if (when) I get that far with an idea. Thanks a lot
Very insightful, thank you
Really loved ur content ❤️❤️👍👍
Many Many Thanks. Most stuff that you talk about is pretty hands-on isn't covered in a fancy college degree :)
Looking forward to many more great videos.
best channel ever
Great video and thank you. Carving your own path post seed is never talked about for some reason
Amazing content and product
Thank you
Great content!
Very important topic
All hats down to you guys much respect and love")
Thank you!
Please can you make a video on finding Angel Investors in Africa especially in the Tech Industry
Good stuff!
good stuff!
Awesome!
Exactly my story as well.............this is exactly that happened with my business...........
Hi, such wonderful information! Curious if you had to do it all over again would you use a different financial instrument? SAFE note? None? Would be good to get your take on this! Thank you once again!
Excelente! muy realista
Amazing content man, a no Instagram story
The background music was very distracting.
convertible debenture can be really butthurt for startups that went public as some investors could short the crap outta the company with their convertibles
Company forensic on Quibi
Caya, thanks for this video. My business has raised some funding through convertible notes and for sure this is something we should have in mind. I still have one question, it will be great if you can help me with it: I have raised funds from 6 different people through convertible notes, but not all of them at the same time. The first one was in March 2020 and the last 3 were in September 2020. In March 2021 I am supposed to valuate my business in order to convert the debt of my first investor. This valuation applies to all the 5 other investors or should I do 6 different valuations for each one them. I'll really appreciate your feedback on this. All the best, Nacho. (btw, I am from Colombia, I know you are from Costa Rica but, as I haven't heard you speak spanish I'll rather write this in english. If you wish we can continue in spanish :) )
Is it necessary for a CEO to be a God level master in cooperate accounting?
Corporate accounting?
Not necessarily!
I always look at a CEO as a person of jack of all trade. Just enough knowledge to understand and judge whether things are good or bad in each area
You really inspire me to pursue this dream of mine. I was curious if a podcast can be considered a profitable business. My friends and I started a podcast at our job and have slowly gained a following. We want to take it to a business level, but I'm not sure if you can do that with a podcast.
Can someone tell me if funds round services if is reliable
Caya, did your noteholders have board rights when converting? Are the ones that converted and stayed in a position to influence the business' strategic decisions? In my experience control or concerns about control is another prickly issue founders struggle to talk about.
Legends
🙌🏽
There are now let's plays for everything, including running a startup lmao
I’m not the best in maths but I think 3x is a 200% growth.
Does any one knows how slidebean is different from Microsoft Power Point? Sorry, a noob here.
if you did all of that between 17-20 wtf did you do before that? All those services is essentially everything you have in the site....
Hi caya you vedios are awesome, will you please make a vedio on organization Structure chart for a start up
As software (+ tech?) company, you sir should wear a glasses. It's help with image & presentation on future videos.
From what point on are you defined being an investor? Couldn't you just sell one out of ten million shares to your good friend for 1000$ and then make the investors convert to a ridiculously low number of shares? Surely there must be a definition of an investor in the convertible note?
Convertible notes sound dangerous. Reminds me of a balloon 🎈 mortgage. Ready to bust in your face and puts you in massive trouble.
I tried Slidebean for our pitch deck and didn’t like it.
The user experience is not good and not worth paying for in my opinion. Specifically, dragging and repositioning stuff on the slide is insanely hard and frustrating. I don’t even think you could pay me to use it. Never mind me pay you.
Focus on improving your product and maybe you can grow to the unicorn status you want.
Failure (I.e. WeWork) 😂
Great content.
Thanks.
Awesome!