Entries by Peter

Why Discounts on Convertible Notes are for Losers!

There are a lot of misunderstandings about convertible notes and how they work, but one misunderstanding that I have not seen described well is the issue of the valuation cap vs. the discount and what the relative benefits of either outcome would be for investors and founders. First, a quick summary of how convertible notes […]

Brad Feld: The Startup Community Way and Complex Systems

Brad Feld and Ian Hathaway describe the startup community as a “complex system” in their new book, The Startup Community Way, By this they mean that it is inherently unpredictable and needs to be managed by more formulaic systems ranging from simple (like making coffee) to complicated (like having a financial audit for your company) to […]

How to Avoid Startup Due Diligence Groundhog Day

Pitching your startup to angel and VC investors can seem like groundhog day – doing the same thing over and over and over.  Let’s do the math. The average angel writes a $25,000 check. You have to pitch to at least ten or twenty investors before getting to a “yes”.  The average startup raise is […]

Impact Investing’s Secret Weapon – the Donor Advised Fund

Impact investing has always been focused on creating positive social and/or environmental outcomes.  At some points, Impact Investing has struggled to define itself as compared with philanthropy. Both require measurable positive outcomes, and some philanthropies accomplish outcomes that startups cannot while some startups accomplish outcomes that philanthropies cannot. How are we to choose? One way […]