The conversion rate for the notes will be based on the performance of Cyras's IPO. Sources close to the company say that it is planning to file for an initial public offering in October.
Cyras’s financing technique is unusual today but is set to become more common, observers say, as startups staffed by experienced entrepreneurs dispense with VCs' connections, experience, and money in favor of cutting their own deals. “The VCs are the losers, but you need a first-class [management] team to pull this move off,” says a partner at a venture capital firm, who spoke anonymously.
— Stephen Saunders, US Editor, Light Reading, (Light Reading)