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What is convertible equity (or a convertible security)?

Startup Company Lawyer

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. At the maturity date, there is a risk that investors may demand repayment. Background. The YC Series AA documents contain similar provisions.

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How to Evaluate Firms for a Seed VC Syndicate

Genuine VC

There are essentially two distinct basic strategies for startup entrepreneurs to raise a seed round of capital: Subscription approach – An entrepreneur sets a structure (usually a convertible note) and recruits individual angel investors who subscribe to the round, all without a term-driving lead investor.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

I think that there are certain situations where the Series Seed and other stripped down equity financing documents might be appropriate, but I know that there are lots of situations where early-stage investors probably wouldn’t agree to the Series Seed terms. Right of first offer on future financings.

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Pre-Series A Startup Boards

Austin Startup

Advisors often times are angel investors as well. Know the difference between a Board Observer, Information Rights, and being a member of the Board of Directors. Most angel investors writing small checks are buying the right to a small portion of the Company, and that’s it. They just advise.