Ask HN: How to make convertibles more attractive for seed funding in India?

One of my friends is raising seed funding of $300k via Compulsory Convertible Debentures (CCDs) in India under the following terms:<p>Share class for seed-stage investors: Series A preferred stock Liquidation preference: Yes Pro-rata rights: Yes Valuation Cap: $5m Discount rate: 1% per month until Series A or 18 months, whichever is earlier Maturity Date: 18 months ESOPs: 10% Equity Dilution at seed funding: ZERO<p>Please suggest modifications.