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Modern Startup Financing by Carolynn Levy

Startup School by Y Combinator

CHAPTER

What if I Never Do a Priced Round and My Safe Never Converts?

Convertible promissory notes used to do is they would have a term sheet attached to them as an exhibit. At the maturity date, if the company hadn't already gotten a priced round put together with a new lead investor, that money would automatically convert on the terms that were negotiated on that term sheet. That's just more stuff to negotiate, and i didn't want that to be part of the safe. If your investor said, let's just u let' ust have this automatic conversion event,. Here are the terms, you can toly do that. Two more questions. Ok? Any one else? Yes. So what would you recommend for, instead of taking out investment

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