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

Lawyers can charge as much as $10k-$30k (in the US) to draft and execute the legal docs for an equity round, and traditionally, founders are responsible for paying for this as well as investors’ legal costs! 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

Business Plan Blog

NOVEMBER 13, 2013

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Raising Angel Capital. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Example: An angel investor contributes $300,000 convertible note to a startup.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Gust

SEPTEMBER 5, 2012

As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

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

AUGUST 31, 2018

If you’re a notable founder / have pedigree or if you are in a hot space, or if you run your fundraising process really well, it’s possible to skip a stage. I have a few founders I’ve backed who are just on the border of post-seed / series A metrics and are able to get term sheets from both series A and post-seed investors.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

Hippoland

AUGUST 31, 2018

If you’re a notable founder / have pedigree or if you are in a hot space, or if you run your fundraising process really well, it’s possible to skip a stage. I have a few founders I’ve backed who are just on the border of post-seed / series A metrics and are able to get term sheets from both series A and post-seed investors.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48