@article {Horotan25, author = {Adrian Horotan}, title = {Convertible Debt with Discount Sacrifices the Upsidefor Early-Stage Investors}, volume = {15}, number = {2}, pages = {25--27}, year = {2012}, doi = {10.3905/jpe.2012.15.2.025}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Unless the discount rate is much higher than what is considered fair, investing in convertible debt with a discount to the next financing round{\textemdash}without warrants, founders stock, or a conversion price cap{\textemdash}is equivalent to sacrificing most of the upside potential for early stage investors.TOPICS: Private equity, portfolio construction, fixed income and structured finance, portfolio theory}, issn = {1096-5572}, URL = {https://jpe.pm-research.com/content/15/2/25}, eprint = {https://jpe.pm-research.com/content/15/2/25.full.pdf}, journal = {The Journal of Private Equity (Retired)} }