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The danger with convertible notes | Sidebean


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The danger with convertible notes

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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

Recommended videos:

Startup Funding 101: https://youtu.be/njx09wXb9o0

How NOT to spend your first $250,000 round of funding: https://youtu.be/J-9H_rXMlos

Read the video transcription + sources: https://slidebean.com/blog/startups-danger-convertible-notes?utm_source=youtube.com&utm_medium=content&utm_campaign=ba-content

Follow Caya: https://twitter.com/cayahere and https://instagram.com/caya_here

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Sidebean makes documentaries about startups, tech, and their impact on society. It is a venture-backed company that helps other startups navigate the complicated road to success. They love to cover stories around business, startups, and tech, trying both to teach and entertain.

Subscribe to Sidebean on YouTube: https://www.youtube.com/@slidebean/

Disclaimer: This podcast is an independently produced audio adaptation of content originally shared by Sidebean. It was created by a fan who appreciates Sidebean’s thoughtful storytelling and wanted to make these ideas more accessible for audio-focused listeners. This is not an official production of Sidebean, nor is it affiliated with or endorsed by the channel. All rights to the original video content belong to Sidebean. If you are a representative of Sidebean and have any questions or requests, please feel free to reach out.

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Keywords: tech documentary, tech society, business podcast, digital transformation

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