Earlier this year we had the chance to connect up with a pretty incredible VC firm called Emergence based in Silicon Valley. We met with one of the partners Joe Floyd for lunch at a crowded diner in San Francisco and I was instantly impressed both with him and the thoughtful process that the firm goes through in picking their investments.
Quick but pretty badass sidenote – Joe also published an incredibly cool comic book called Silicon Heroes which as the title implies, is a fictional comic book story that follows five tech workers and their journey to discover their entrepreneurial superpowers.
Along with being a pretty impressive VC firm with $920M under management, they also share some great content through their blog and podcast. Their most recent post (which happens to be written by Joe) is an absolute must-read for Seed stage founders. It actually covers a topic that we struggled with a lot in the early days – should we raise money using a convertible note or use a different instrument?
In the end, we have gone with priced rounds for the last four years for a number of reasons, and while there are still plenty of ways to use convertible notes in a way that works out well for founders, there are some serious pitfalls to look out for and I think this blog post does a great job of highlighting a number of them.
Okay, enough of me gushing about how awesome Emergence is, or how risky convertible notes can be, let’s get to the good stuff – here’s the latest blog post from Emergence – How to avoid the 7 deadly sins of seed financing.