Regarding convertible notes: "“You’re putting in money now and getting a valuation later, whether the company is a failure or a success. If it’s a success, you get the valuation after it’s a success, but you really want the valuation of the company to be lower,” he says. “As an investor, that’s the wrong alignment with a start-up.”"

I didn't think sophisticated investors were doing convertible notes without valuation caps - something this article makes no mention of.

cdixon: "I believe that pretty much every other seed investor who advocates converts also assumes they have a cap. So any discussion of convertibles without caps seems to me a red herring." [1]

Clarification please? (Josh?)

[1] http://cdixon.org/2010/08/31/converts-versus-equity-deals/

EDIT: Congrats on the recent funding and founding!