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What is convertible equity (or a convertible security)?

Startup Company Lawyer

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.

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A primer on convertible notes, convertible securities, and equity

Hippoland

If this is your first time raising money, the mechanics of how investors buy into your company can be very confusing. Here’s a quick primer on how investments tend to work in startup companies at the seed stage. Equity Traditionally, investors have invested in companies to receive equity, or shares in a company.

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The state of Q2 2018 pre-seed/seed-stage fundraising: Part 1 - crypto version

Hippoland

The fundraising landscape in 2018 for pre-seed and seed-stage companies has changed a lot even in just the first few months of this year. Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. This year has been crazy in the fundraising landscape.

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The state of Q2 2018 pre-seed/seed-stage fundraising: Part 1 - crypto version

Hippoland

The fundraising landscape in 2018 for pre-seed and seed-stage companies has changed a lot even in just the first few months of this year. Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. This year has been crazy in the fundraising landscape.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

How to finance a new seed-stage startup? Convertible debt? Convertible equity? 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.”

Finance 134
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Pre-seed is the new seed

Hippoland

Also, to be clear, pre-seed doesn’t mean that one just thought up an idea yesterday and has done nothing. There’s a lot of work to do to prepare to raise money at this pre-seed stage. So, this magical $1m runrate number is now the rough benchmark for the post-seed stage.

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Pre-seed is the new seed

Hippoland

Also, to be clear, pre-seed doesn’t mean that one just thought up an idea yesterday and has done nothing. There’s a lot of work to do to prepare to raise money at this pre-seed stage. So, this magical $1m runrate number is now the rough benchmark for the post-seed stage.