The CFF Convertible Note
What is a convertible note?
A convertible note is an investment vehicle converts to equity when certain conditions are met (usually when the company raises more money). You can learn more about how convertible notes work here.
What are the terms of the Campus Founders Fund convertible note?
Our note terms are the most founder-friendly out there. The note has no cap and no discount (see the link mentioned above for an explanation). The note converts to equity when the company raises a round of at least $100k. At that point, CFF receives equity for our investment at that round's valuation. The CFF note also contains a Most Favored Nation clause for subsequent notes that are raised. In addition, Stephen Walter has generously offered to be pro-bono council for entrepreneurs receiving funding from Campus Founders Fund.
If the company fails, do the founders have to repay the money?
No. We understand the risk we are taking by investing in founders at the earliest stage. In the worst case scenario, we hope entrepreneurs push their limits, challenge conventional wisdom, test compelling ideas, and then share their learning with others, knowing that success is one step closer than before.
I have more questions. How can I get in touch?
Send us a message here and a member of our team will get back to you!