Startup Company Lawyer

AUGUST 31, 2012

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. 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.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Hippoland

JANUARY 4, 2017

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.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

Austin Startup

NOVEMBER 6, 2017

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.

Delaware 48

Delaware LLC Startup Silicon Valley 48

Business Plan Blog

NOVEMBER 13, 2013

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*. 2) Giving equity in the company.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Gust

SEPTEMBER 5, 2012

I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months).

Finance 134

Finance Convertible Security Equity Seed Stage 134

Gust

OCTOBER 5, 2011

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

Finance Preferred Stock Term Sheet Early Stage 79

Hippoland

MARCH 30, 2018

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. These are groups of angel investors – individuals who are pooling their money together to purchase tokens. 7) Token-sale raises are becoming smaller Investors becoming more wary of large raises.

Seed Stage 48

Seed Stage Syndicate Syndication Convertible Security 48