I raised a seed round (500K) in two tiers, on tier late last year, and another this Summer. All the same terms including valuation. Basically, after raising 350K last year, which I thought would be enough to get to profitability, in April I realized I would need to raise the remaining 150K.
One of our investors told me that it was a bit disappointing that the early investors would get the same terms as those just joining now.
Putting aside the fact that the earlier investors did not raise any complaints at the idea of a second close when we got them in last year, I tend to agree with this investor, and would like to keep my current investors incentivized going forward.
I was thinking of issuing them options, perhaps structured so to give them an additional 20% (just mirroring the traditional discount structure in a convertible note).
What should I do?