Changes

<span style="font-size:medium;">They invest on a founder-friendly uncapped convertible note. What&nbsp;this means that an investor loans money to a startup, but instead of receiving their money back after a certain time period, the note converts into stock.&nbsp;However, if the startup is successful without raising additional capital or pursuing equity financing, the note may not convert and the startup can choose to simply repay the note plus a very nominal (around 2%) interest rate. At Dorm Room Fund they try very hard to operate as transparently as possible so that every aspect of their terms are clear and understood.&nbsp;Knowing that some companies won’t work out, they realize that a failed company is not the same as a failed entrepreneur. As long as we all everyone learned something, they view this money as tuition paid toward an entrepreneurial education – for everyone involved. So, if it turns out that your company does not explode into the next billion dollar business and instead fails, the Dorm Room Fund takes a loss and the founders DO NOT need to repay the money whatsoever.</span><div></div>