This video was uploaded 12 years ago and it’s amazing how well they’ve traveled through time. Better than most videos I’ve seen on this subject.

This is the most straight forward explanation of Convertable Debt I've ever heard.

Very straight forward. Great job explaining because I watched a 2 hour video and was still lost. This 10 minute video taught me everything I need to look at this option with confidence. Thanks again!

Articulate, clear, to the point and very helpful. Much appreciated! Thanks.

I was able to understand everything from start to finih by just watching this video once. Great teaching skills!!! thx

Thank you very much for this video! I understood the concept much better than the two 5 minute videos that I watched that oversimplified the same concept.

Best video to explain convertibles. Thank you.

Great video on convertible debt. Thank you for a clear explanation.

Wow! This explanation was very clear. Thank you very much.

Excellent video. this crash course immediately helped me negotiate a better deal.

proly the best video i have seen on this subject- ty!

This video really helped me understand the concept- Thank You!

Still the best video out there on this topic.

Great explanation and flow of Convertible debt.

Clear and succinct, Thank you!

bravo this is a clear and informative video

very nice video. well explained and easily understandable.

Thank you. Easy to understand!

I have researched through Venturehacks, entrepreneur-com, Quora and others, and your information is always the best. Your explanation of Convertible Debt is excellent.

Great video, studying for my final this evening lol

Great video, thanks!

Excellent explanation

Actually, that's the best explanation I've seen and under 15 mins. do you have any explanation on SAFE?

Great video

Great job. thank you

Thank you sir! Very clear

Thanks for explaining, your other videos are great too. Subb'd

great video I had a few questions. 1) how do you get back to owning greater than 50% of of the company? At this rate you don't have deciding control of the company.

Well done!

Really good tutorial

Great video....let’s be real though about bankruptcy for a startup... what are they really going to have that will be worth going after at that early stage?

can the trigger event be directlybe ipo for vc and angel both ?

@timlcooley 2) Lets assume the second company evaluated the company at 1 Million and wanted 50% ownership. Based on $1 per share: you would have to give them 500,00 shares. You would still have to give the original loan company 550,000 shares. Now, you don't have that many shares to give. Also at this point you don't have any ownership of your company. How would this work? 3) what if you never need a second investor?

Can this calculation / concept be applied to SAFE note too? And how do things change with a valuation cap?

What determines the pre-money value? in the example its said 1 million, why?

Great job and thanks for making this so easy to understand. I'd also love to see a video on how debt conversion affects existing stock price. Is it bad news? Good news? Thats still fuzzy for me.

@LiliBalfour

10 жыл бұрын

Hi David, I created a tutorial on cap tables. It outlines what happens when the convertible note converts to equity. Check it out on my channel.

how is it different from a bond issued by a company?

In your example that makes since. Lets assume Company A did 500K load with the 10% Company B did 500K with a post money valuation at 1M and wanted 50%. I am assuming this is not possible. I would imagine that the post money is always more than the money you have already raised, but if it wasn't how would this scenario play out? The loan equity would be worth more shares than are available.

Man, this is lit!

brilliant!

@timlcooley 4) how would you go about all of this if you wanted to maintain a controlling body in your company?

Hi Quatere, what could be a reasonable interest rate for the initial loan?

Great job. thanks for explaining that

Since when Kimi Raikonnen is doing some badass finance ?

I'm surprised you don't mention death spiral financing in this video. Why?

Does pre-money means money already owned by hassel hoff dot com before taking loan from ankle partners?

So what happens is there is a price cap and the new investor’s valuation exceeds the price cap?

I love you!!!

Goof stuff! I believe this perverse incentive that you mentioned is taken care of by the introduction of a CAP, which doesn't necessarily make life easier for the entrepreneur.

convertible bond.. convertible debenture.. convertible debt.. convertible note.. im getting confused. which one are we talking about? why do these terms all have to sound so similar

Would ankle biter partners be paid interest on the 500k until it converts?

@paulocgrf

7 жыл бұрын

No.