We've come to the last installment of the Super Angel v. VC SMACKDOWN and we've saved the wonkiest, nerdiest topic for last: Should entrepreneurs swap investor cash for convertible debt or equity?
Somehow, this is the topic that generates the most passion. If you don't understand the basics, August Capital's David Hornik-- a former lawyer-- breaks them down: "It's about price and control." Angels are saying that convertible debt deals are more entrepreneur friendly, but Hornik says there's an easier way to make sure you don't get screwed: "Don't take money from people you don't trust and like." And then, Super Angel Dave McClure invokes Allah....yeah it doesn't make a lot of sense in the video either.
The best moment of the entire series had to be in the 8 minute range when Hornik tells McClure to "shut up so he can agree with him." Feel the love, people.
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