One common approach with seasoned Angel Investors, known as “convertible debt,” can be a sweetheart deal for the angel, but the question is, Is it good for the entrepreneur? Convertible debt is the best of both worlds for the angel investor, but is it for the entrepreneur? The risk for an angel investor is they invest money in an entrepreneur’s business and find the company’s stock is worth nothing in a few years and they lose their money.
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Convertible Debt: Should Entrepreneurs Consider This Option With Angel Investors?