article thumbnail

What is convertible equity (or a convertible security)?

Startup Company Lawyer

” As a result, Ted introduced the Series Seed preferred stock documents as an alternative to convertible debt for early stage investments. As a result of this risk, some people like Adeo Ressi, have declared that 2011 will be the “ year of the startup default.” The problem.

article thumbnail

Investor Nomenclature and the Venture Spiral

K9 Ventures

Incubators and Accelerators : Incubators and accelerators have to a large extent replaced the funding from friends and family. The incubators and accelerators are investing $15-$50K in a large number of early stage teams (the current YC class has 60+ teams !). Incubator / Accelerator. Common Stock. Preferred Stock.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Everything You Ever Wanted to Know About Convertible Note Seed Financings (But Were Afraid To Ask) – Part 1

Scott Edward Walker

Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. ii) why are convertible notes issued instead of shares of common or preferred stock?

article thumbnail

Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

As lawyer Scott Edward Walker wrote earlier this year, because of this “Convertible notes are ticking time bombs: if the maturity date is reached, and there hasn’t been a Series A round (triggering the automatic conversion of the notes into shares of preferred stock), there is the potential for disaster.” 2011 Holiday.

Equity 87
article thumbnail

Startup Resources

www.vccafe.com

Incubator List/ Local Startup Resources/ Startup Q&A. List of Startup Incubators. Israeli Center of Incubators. Crunchies 2011. Mark Suster GRP Partners Advice. VC Experts. Seed Stage Valuation Guide. Founder Equity Issues. Fred Wilson Advice and spreadsheet. Venture Hacks equity section. Startup Resources â??