[samwise]

even though pg says "there’s no reason for companies to turn it down"

There would be an advantage to being the only company not to accept the funds. i imagine the press and standing out in the herd might be well worth passing on the 150k.

Plus i think others angles and VCs will through money at you knowing you turned down the easy money.

[paul]

If you're looking to stand out, you could also stab yourself in the eye with a fork.

[il]

Or it might backfire and just show that you don't have enough business sense to take the money.

[pmjordan]

That doesn't seem a terribly good reason to turn it down. A valid reason might be that the company is already profitable or has "enough" runway from a friends & family or non-YC seed round. In this case the convertible note's due date (or interest, if there is none?) might somehow be a problem, as it forces the company to sell more equity to get a conversion valuation. It goes beyond my knowledge of these things, however.

[brudgers]

Being better is a better way to stand out.