article thumbnail

What is convertible equity (or a convertible security)?

Startup Company Lawyer

Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. Paul Graham sparked some commentary by declaring in a tweet in August 2010 that “Convertible notes have won. The problem.

article thumbnail

Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. . However, only recently have early-stage companies started to use this model at any scale. . So what is Revenue Based Investing? Also of interest.

Revenue 60
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

New Survey from Fenwick & West Looks at Angel Funding Landscape

ReadWriteStart

The survey includes responses from 52 Internet, digital media, and software companies that raised money in the Silicon Valley and Seattle in 2010. Seed stage funds led 45% of the financings, individual angels led 31% and venture capital funds led 24%. The median amount raised in preferred stock financings was $1.1

article thumbnail

Is Convertible Debt Preferable to Equity?

Both Sides of the Table

Funnily enough I just answered this question yesterday on Quora when somebody asked, “Why would an early-stage investor specifically NOT prefer a convertible note structure to straight equity (e.g. a priced/valued preferred stock financing)?&#. Why many early-stage investors DO price rounds (e.g.

Equity 319
article thumbnail

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. To differentiate it from typical “Series A&# preferred stock, which comes with certain expectations with regard to rights.

Finance 70
article thumbnail

Examples of good startup term sheets

www.quora.com

and I'll accept) 5 Comments • Nov 1, 2010 Thanks, Ty. Mark Suster • Nov 1, 2010 Here is a post on Brad Feld's blog on the seed financing docs he found, some of which you mention: [link] chives/. David Shen • Nov 1, 2010 Whoa! Ben Joven • Nov 3, 2010 This is great, thanks Mark! Technologist.

article thumbnail

Investor Nomenclature and the Venture Spiral

K9 Ventures

In my view the terminology being used for early stage investors by the press and the media is not as clear as it should be. I’ve talked about this on several occasions when I’ve been at conference and on panels, but I figured it would make sense to do a post explaining my taxonomy of the early-stage investing world.