The Truth About Raising Early-Stage Capital | Rock The Post | Blog

The Truth About Raising Early-Stage Capital | Rock The Post | Blog: "I bought the assets through a negotiated three-part deal that included cash up-front, a senior note payable (debt that takes priority) and finally, convertible debt that will eventually give the nonprofit (which is a going entity) a future position in the company. If the company is wildly successful — as I intend it to be — the nonprofit will be quite successful as well.
For all the negotiating, the debt and the buyout, I had yet to raise new capital to build the company. Reflecting on the lessons that I had learned about valuation, and understanding that equity in the early stage of a company is usually not ideal, I took on convertible debt from two angel investors."

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