Tyler Tringas

It's by basically forcing an entrepreneur to do something they don't want to do, right?

You know, if they never intend to raise an additional round of financing, most of the early stage instruments, convertible notes and safes really are orientated around the idea that you will raise another round.

And if you don't raise another round, they either do stuff that's, you know, not great, like accumulate interest indefinitely,

Um, which can actually, depending on how they're structured, like convertible note with an 8% interest rate, you know, if you invested that in base camp, maybe it might work out great for you because it's been 18 years of compounding interest and you actually own 70% of the company if they ever sell it.

That is fair.

Yes, you could do that.

Yeah.

So basically, it's not mutually beneficial, right?

I mean, the word I often use is alignment, right?

So it's either a situation that's bad for the founder or it's a situation that's bad for me, right?

Like if they pay it off, well, I only got 8% interest on this actually fairly risky venture, right?

And, you know, otherwise they end up, you know, in some middle ground where it's just accumulating interest rapidly and they don't have...

you know, 200 grand to pay off the note.

So it's getting to be more and more and more of their company.

And so they're forced to take a price round, right?

It's just not, none of those are aligned to where the outcome is, you know, we're high-fiving with the founder, right?

And so that was the, the, the, the principal problem is like, how do we make it to where what you want to do

And your version of success is also our version of success.

I don't think so.

So let me just describe what it is and then we'll recalibrate.