Pommardify: Convertible Notes in Seed Funding
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