[klochner]

Do 90% give up with $100k in the bank without taking additional funding rounds?

I see the benefit of the convertible note from the investing founder's standpoint, and I appreciate the violence of your disagreement, but you've misaligned the founders' incentives - the investing founder would be more likely to throw in the towel and get her money back.

Obviously the equation changes if the founder is investing $1M, but in the $10k-$50k range (which I'm guessing is a lot closer to the actual number than your $250k example) I'm not as convinced that the investing founder should get preferred or convertible notes.