Y Combinator valuation formula, convertibles useful for early startups: YouWeb CEO

Peter Relan (left) and Hung Tran, his co-founder at GotIt!, at the Vietnam Silicon Valley Accelerator.

Convertible notes or the Y Combinator valuation formula are approaches to avoid price negotiation at the early stage of a startup. Through these methods, early investors can wait for the seed stage institutional player to set the price (valuation) and convert their equity at that rate, opines Peter Relan, head of Silicon Valley early stage incubator YouWeb.

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