VC is not always equity, especially in the early stages of a company. Convertible notes are debt instruments (and SAFEs are warrants).
They convert to equity eventually, so you are of course correct in the long run (and why it's a nitpick).
But until that happens your investors are debt holders.
VC is not always equity, especially in the early stages of a company. Convertible notes are debt instruments (and SAFEs are warrants).
They convert to equity eventually, so you are of course correct in the long run (and why it's a nitpick).
But until that happens your investors are debt holders.