Demo your startup to win a $100k convertible note. Bring It. Kill It. Get Paid.

http://fundedbynight.com

by jeffepp • 15 years ago

68 31 15 years ago

fundedbynight.com

nopal• 15 years ago

http://www.businessfinance.com/convertible-note.htm

jeffepp4• 15 years ago

The event is Sponsored by Rackspace http://rackspace.com (Thanks, you rock!)

The VC 'funders' are Ludlow Ventures (http://ludlowventures.com) & Detroit Venture Partners (http://detroitventurepartners.com)

I should also mention this is a non-profit event

acgourley• 15 years ago

if travel_cost < win_chance*100000 then go() end

DVP has a mission statement in investing in Detroit companies, does this mean there is a bias towards locals?

EDIT: yes you're all correct - the formula is more complex than that, I should have said that for many people (including myself) the other factors are an order of magnitude less substantial.

jeffepp4• 15 years ago

We are working on getting travel sponsors to subsidize these costs. The investors will choose the company they believe to be the best investment, regardless of location.

jtriest6• 15 years ago

hey.. jonathon from Ludlow Ventures here. no local bias in the event. we're certainly excited to have the event in detroit, but the best company will win regardless of where they are from/located.

zizee• 15 years ago

Even international companies?

Sam_Odio• 15 years ago

You forgot the risk premium, among other things. http://en.wikipedia.org/wiki/Risk_premium

teaspoon• 15 years ago

That algorithm is really only rational if the $100k in question is strings-free cash, which this isn't.

micahb37• 15 years ago

this looks awesome!

dstein• 15 years ago

But if it's in Detroit what are your chances of getting out of the city with the money?

Rariel• 15 years ago

Because people are stuck up for convertible notes all the time.

trustfundbaby• 15 years ago

I feel a bubble coming on.

dshankar• 15 years ago

How is this a sign of a bubble? Offering a $100k purse to a startup is not unheard of (see TC Disrupt etc.)

This is actually worse that those prizes since its an _investment_ and not free cash.

gyardley2• 15 years ago

'Getting paid' and/or winning a prize is a very different thing from taking an investment. You don't 'win' a convertible note, you agree to give up an as-yet-to-be-determined portion of your company for it.

The participants will almost certainly understand this, but I still find the rhetoric a bit off-putting.

jtriest6• 15 years ago

jonathon from ludlow ventures again... i apologize if any of the language is misleading. our goal is to be as transparent as possible. in fact, we will be posting the actual note soon... this way everyone knows what's being offered.

GBond• 15 years ago

Probably phrased that way for "oompf" factor. "Win a favorable term loan" doesn't quite have the same ring to it.

Might I suggest the a new terminology for founder favorable seed-round convertible notes?: "Yuri bucks"

edit: BTW, great to see an innovative startup event taking place in downtown Detroit.

gyardley2• 15 years ago

Not too hard to fix and retain the oompf:

'Demo your startup to receive a $100K convertible note. Bring it. Kill it. Get funded.'

metageek• 15 years ago

I'm willing to believe this is entirely aboveboard.

But the name rhymes too well with "fly by night".

calbear81• 15 years ago

I'm not sure about a site where the word "transparent" is misspelled as "transparant". Good luck any startups that are attending!

jeffepp4• 15 years ago

Good attitude. Clearly, the work of someone volunteering their time for a non-profit is indicative of the event as a whole.

mikelanger• 15 years ago

I think this an awesome idea really works well for young startups! http://stuffbuff.com

skullsplitter• 15 years ago

As a developer working w/ a MI based startup this is intriguing. Well see how it plays out but its an encouraging sign for startup's outside of the sv-hub.

tastybites• 15 years ago

"Winning" a chance to give away part of my freedom?

jtriest6• 15 years ago

we look at it as an opportunity to partner with and help grow an amazing company.

adellecharles• 15 years ago

So great to see that this is running as a non-profit. I think it's an awesome initiative and looking forward to the event.

jtriest6• 15 years ago

thanks for the kind words!

marcamillion• 15 years ago

> we're as transparent as a new layer in photoshop...

That has to be one of the most interesting descriptions I have heard for ANY investor.

I have no affiliation with that company or the investors.

That line was pretty clever though.

zach• 15 years ago

Wow, it's like a battle of the bands for startups.

This would be a great premise for an episode of an as-yet-unproduced TV show about startup founders. However, the people watching would probably think that it was completely contrived.

Demo your startup to win a $100k convertible note. Bring It. Kill It. Get Paid.

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