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Convertible? Equity? What kind of coin should you use to scratch off a lottery ticket?

This is going to be BIG.

There’s been a lot of debate recently in the market about what kind of investment structure is best for angel and seed arounds. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note. According to Paul Graham , “ Convertible notes have won. Was that entrepreneur unfriendly?