Should Startup Founders choose to Raise Funding for Equity or Convertible Note?

The Pros and Cons of Both

Photo by NeONBRAND on Unsplash
  1. Raise enough money from a small number of highly qualified investors who believe in their vision and are willing to take a large enough risk (e.g., 50%+ equity stake) that they will feel comfortable if things go wrong with the startup or its management team and still get compensated fairly if things go right.
  1. Most founders prefer them because of lower friction associated with fundraising.

Founder of Cudy Technologies (, a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and investor.