11. Discuss the following statement: "Convertible securities are good for the investor but bad for the entrepreneur. They do not leave anything to the entrepreneur - not only if the venture fails, but also if she avoids disaster and achieves moderate results. If the venture is successful, the investor obtains additional cash flow rights. In the end, this can destroy an entrepreneur's willingness to take up the risk of the venture." 12. . Discuss the following statement: Entrepreneurs should be wary of staged financing. On the face of it, raising a smaller amount of money is making things easier, and yes, it does reduce dilution. However, it exposes the company to a huge future funding risk, and gives the investor substantial bargaining power as they will be able to choose the price they want for the shares they buy. Trust me, stay away from it!" 11. Discuss the following statement: "Convertible securities are good for the investor but bad for the entrepreneur. They do not leave anything to the entrepreneur - not only if the venture fails, but also if she avoids disaster and achieves moderate results. If the venture is successful, the investor obtains additional cash flow rights. In the end, this can destroy an entrepreneur's willingness to take up the risk of the venture." 12. . Discuss the following statement: Entrepreneurs should be wary of staged financing. On the face of it, raising a smaller amount of money is making things easier, and yes, it does reduce dilution. However, it exposes the company to a huge future funding risk, and gives the investor substantial bargaining power as they will be able to choose the price they want for the shares they buy. Trust me, stay away from it