Remove Angel Investor Remove Conversion Remove Convertible Security Remove Silicon Valley
article thumbnail

A primer on convertible notes, convertible securities, and equity

Hippoland

Because equity rounds are much more suited towards bigger financing rounds and is a slow way of raising money, convertible notes were a way to be better suited for raising these smaller seed rounds. Raising money on a convertible note is fast — you get your money as soon as an investor signs.

article thumbnail

More Tech Startups are LLCs

Austin Startup

Many angel investors, and also strategic investors, are comfortable investing in LLCs, particularly under a convertible security structure that doesn’t immediately result in equity holdings. Originally published at Silicon Hills Lawyer.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Raising Angel Capital. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Angel investors may invest individually or as part of an angel group, which are usually local organizations made up of Accredited Investors*. Pros and Cons of Convertible Debt.

Finance 93
article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing. At least one well-known Silicon Valley venture accelerator is using a document referred to as a “ convertible security ” rather than “convertible promissory note.”

Finance 79