On convertibles

Convertibles are (seemingly) easier to raise but come with a lot of psychological traps.

Some founders get too used to raising rounds after rounds of convertibles from different investors who never get to know each other. The problem is the more convertible rounds they raised, the less likely a real VC will come in and do a priced round since no one wants to deal with too many existing investors who didn't really know what they were getting into.

At the Hardware Club we have one internal rule governing this:

In principle we do not invest in a new convertible bond round that’s on top of one or several existing convertible bond rounds.

This rule should speak for itself.

On hustling

On burn rate