
Should you raise debt or equity? - Sam_Odio
http://www.venturehacks.com/articles/debt-benefits
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dhouston
great article and discussion. lots of yc companies have gone this way -- we
will probably as well. anyone have experience raising hundreds of k (in
convertible debt) from multiple investors, or is it preferred to get that
amount from only one or two?

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nivi
There are pros and cons of each approach but in general I don't think the
distinction is important.

Take whichever route is faster -- and you'll only be able to determine that
once you're on the road. I think the pros and cons of either approach are
probably a wash.

On one hand, it is more work to close and manage more investors who are each
putting in small amounts. But it is also tougher for multiple investors to
send a single coherent signal that influences your next round of financing
negatively.

On the other hand, it is harder to get big checks from a few investors. But
once they are sold, getting a bigger check may be better because they will be
more likely to help since they are more invested.

