High Resolution Fundraising
19 hours ago
- Convertible notes speed up angel rounds by allowing different prices for different investors, breaking deadlocks caused by investors waiting for others to commit.
- Investors' opinions are heavily influenced by other investors; convertible notes reward early movers with lower valuations.
- High-resolution fundraising uses different valuation caps for different investors based on their value or timing.
- Fixed-size equity rounds are problematic because startups cannot predict the optimal amount to raise.
- The practice of fixed-size multi-investor rounds may stem from imitation of VC series A rounds, but it is inefficient for angel rounds.
- High-resolution fundraising will benefit bolder investors and may disadvantage those who wait.