Angel Investors consider several forms of funding to be most accepted. These include: (1) Preferred Equity, (2) Convertible Notes (essentially a short-term – 12 to 36 months in duration loan) that earn interest over the term of the note, and upon the occurrence of either the end of the note term or a pre-defined financing event convert to a specified form or equity, most typically preferred equity the purchase price of that equity is subject to a discount of 10% to as high as 30%, (3) Bridge Notes – a very short term (less than 18 months) form of a Convertible note, which in addition to earning interest and enabling the purchase of the to be issued equity at a pre-defined discount, is also protected by a pre-defined conversion limit or ceiling, which provides superior value protection to the investor at the time of the conversion event.  It is important to realize that notes of all forms should always exist uniquely and should never be issued back-to-back.