From Paul Allen’s blog: Will Price of Hummer Winblad says that The Charles River Venture Quick Start program (which provides seed capital of up to $250,000 for entrepreneurs) is not good for entrepreneurs as the investment is made in convertible loans with rights to following rounds. So if the entrepreneur struggles then raising further rounds is difficult.
Perhaps better to stick to the standard fare of starting with multiple angels. Sometimes there is talk in the Cambridge Cluster of convertible loans but they are not good for serially funded companies. If you are in, jump in with both feet and “kick ass” to get market traction. But if convertible loans with rights on further rounds (not something which most angels offer as they have limited funds) is the only offer you get, any back slip and you are washed out!
Hat tip: Geoff Jones
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