Comments on: How to Raise Money Using a Bridge Loan or Convertible Note

By: robkelly

robkelly — Wed, 21 Jul 2010 07:10:42 +0000

Asheesh Advani writes a good article in Entrepreneur.com about Raising Money Using Convertible Debt.

I like how highlights 3 decisions to make when using convertible debt:

1) What will be the event that triggers the conversion?
2) Will there be a discount upon conversion
3) What will happen to the investment if the conversion doesn't occur?

The whole article is here: Another good article on this topic is here: http://www.entrepreneur.com/money/financing/sta...

By: robkelly

robkelly — Wed, 21 Jul 2010 01:10:42 +0000

By: robkelly

robkelly — Tue, 09 Feb 2010 17:14:37 +0000

My take on the Easy Google Profit Kit is to be very cautious. It's not authorized by Google and there are plenty of warnings out there about it at http://answers.yahoo.com/question/index?qid=200... and http://www.google.com/support/forum/p/AppSecuri... — some folks are using the word “scam” to describe this thing…so be careful!

By: kiramatalishah

kiramatalishah — Tue, 09 Feb 2010 07:28:13 +0000

Anyone experience anything about the easy google profit kit? I discovered a lot of advertisements around it. I also found a site that is supposedly a review of the program, but the whole thing seems kind of sketchy to me. However, the cost is low so I’m going to go ahead and try it out, unless any of you have experience with this system first hand?

www.onlineuniversalwork

By: gudfuk

gudfuk — Sat, 23 Jan 2010 10:10:34 +0000

Ah ic biggy dic

By: robkelly

robkelly — Sun, 10 Jan 2010 21:30:23 +0000

Regarding the Conversion Discount, a lawyer friend of mine cautions that you should be careful about the behavior this may encourage from your Bridge Lender:

“the conversion feature does create an economic incentive for your investors to want a lower valuation in the next round (due to the conversion discount which results in them getting more stock at lower price). If you are counting on your seed investors to help you raise the next round, this may not be a good thing.”

By: David Williams

David Williams — Sun, 29 Nov 2009 19:40:24 +0000

What are the liabilities, if any, for a company issuing convertible notes where a conversion would take the outstanding shares over the authorized shares. Ie – is it necessary to establish a share reserve for any convertible notes issued?

By: Rob Kelly

Rob Kelly — Tue, 17 Nov 2009 03:54:14 +0000

Great point, Dave…I agree it would be tougher to not set a valuation in this economic climate.

By: David Steinberger

David Steinberger — Mon, 16 Nov 2009 20:51:51 +0000

Great post. Very useful information and great advice. One question….while you don’t *have to* set a valuation, it seems like without a cap, the investor is taking on the bulk of the risk. Is that still realistic in the current investment climate?