Pommardify: Convertible Notes in Seed Funding

Should the founders of a tech startup re-structure their convertible debt agreement?
Edward Zimmerman, David Haber  | Fall 2013
Print this page
As Pommardify, a tech startup founded by Tuck MBA classmates Simone Tufnel and McKinley Keef in 2011, prepares for a Series A financing, Tufnel learns that a provision of the original convertible note financing could give initial investors a much higher-than-expected 7.5x liquidation preference. Should Tufnel retrade the deal and risk alienating and losing the backing of lead angel investor Decibel Angel Venture Capital (DBA VC)? Or should Pommardify honor the terms of the original deal and possibly lose the support of its potential new funder?

Case ID: 140302

Buy select cases through The Case Centre,  Ivey Publishing and Harvard Business Publishing.

Contact us by e-mail at Columbia CaseWorks or 212-853-8585.