The Pitch avatar

Dexa/The Pitch

Learn more
Published Oct 14, 2020

#98 Hello! You’ve Reached The Pitch Helpline

Explore entrepreneurial resilience and innovation as Josh Muccio delves into the challenge of finding co-founders during the pandemic, mastering remote pitching, and navigating investor relations with strategic approaches like cold emails and convertible notes.
Episode Highlights
The Pitch logo

Topics covered

Popular Clips

Episode Highlights

  • Convertible Notes

    Convertible notes offer a flexible funding option for startups, allowing incremental investments without a single closing event. explains that this instrument enables entrepreneurs to receive funds in stages, such as $25,000 here and $100,000 there, rather than gathering all investors at once 1. This flexibility can be advantageous, but it also means that the exact ownership stake isn't determined until conversion, which can complicate matters later on.

    Convertible notes are a quick instrument to put money into a company, but nobody really understands exactly what you're owning yet.

    ---

    It's crucial for entrepreneurs to ensure that the terms are clear and that investors are committed to the long-term success of the business 1.

       

    Strategic Decisions

    Strategic financial decisions often involve choosing between maintaining full ownership and taking external investment to scale up. shares a scenario where a business could either continue slow growth or accept a one-time capital infusion to accelerate expansion 2. This decision can be challenging, as it involves weighing the benefits of retaining control against the potential for significant growth.

    We'd rather be 80% owners of a $50 million business than 100% owners of a $2 million business.

    ---

    Convertible notes can be a solution, but they require careful consideration of terms to avoid unexpected dilution or financial strain 3.

Related Episodes