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A software guy trying to make sense of the technology world! Co-Founder & CEO at Sverve

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6 responses to this post.

  1. I am glad that you started writing. Really glad!

    Reply

  2. Posted by Sameer Desai on February 25, 2011 at 12:33 pm

    hi Rohit,
    was nice to read your blog.. inspiring….
    the one of innovation is particularly interesting.
    In fact, i am building my thoughts on the same topic and wondering if the world needs to bring down the pace of innovation (well also need to define first what is innovation!!!)
    will be nice to chat with you sometime.
    awaiting my magic jack so as to talk to US friends free.
    cheers
    Sameer Desai

    Reply

    • Hey Sameer,
      Good to hear from you. hope all is well with you. Thanks for reading my blog. I will be very interested in hearing your thoughts on innovation. Certainly the pace of innovation has picked up in the last decade. It is almost following Moore’s law. In the developed world people are on a mission to eek out every bit of productivity from any activity, no matter how trivial. It is fueling the growth and bettering our lives. Look forward to hearing from you.

      Rohit

      Reply

  3. Posted by bosartain on April 25, 2013 at 8:27 am

    Very good article on convertible notes 4/24.

    One of the main reasons to structure a transaction as a convertible note is to avoid having to negotiation of valuation. But the way they are structured these days, you have to negotiate valuation twice (the valuation cap and also the valuation for converting the note at maturity (everybody knows the notes are not going to be paid back)).

    Further, I don’t believe it’s any more expensive to do a “plain preferred” equity round than a convertible note round. The plain preferred documents can have fewer negotiating points.

    Reply

    • This has been our experience as well. However, I have seen founder friendly notes that have only discount [no cap] and investors don’t negotiate additional terms that makes it cheap and quick to close and easy to convert. But again, not everyone is that lucky!

      Reply

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