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Fundraising: What are the pros & cons of Convertible Note vs. Priced Round?
HV
HV
Humberto Valle Texas Real Estate Investor, Wholesaler, & Airbnb Superhost, Get Advice On Growing Your Real Estate Business answered:

Yes, thats understandable. If a person if giving you money on the spot, you have to rewards them on the spot for their risk. Their money is not convertible they are essentially exchanging their cash for ownership.

Do you know what is a strategic investor? If so, I hope you mean someone who is involved and leveraged in the industry you are staking and will help you directly with not only cash but also connections and on hand work. If this is the case then you will probably have to increase his stake considering this, or have an additional % stock after a certain period on top of what he is getting for his cash.

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