[trizk]

An interesting (albeit fictional) movie to watch on this topic is "The First $20M is always the hardest". Yes, you have to give away equity to get funded. But if you are asked for a controlling stake early in the game, then you are being setup for a big letdown.

Also, although convertible notes are very fashionable these days, consider your position if and when you need another round of financing. You may very well be forced into a bad deal under the threat of liquidation to pay your creditors with the company IP. On the other side of the table your investors got you to pour your blood, sweat and tears into the company as well as the financing, and they ended up with 100%. This is not to say that all VCs are bad, or even most. Rather, that is the substantial risk of a convertible note.