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What is convertible equity (or a convertible security)?

Startup Company Lawyer

One major concern about convertible debt is that it eventually needs to be repaid if another round of financing doesn’t occur. ” If the company didn’t raise a round of financing, the convertible debt would convert into the last round of financing (i.e. Series A) or have to be repaid.

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Startups and IP Ownership Issues

Scott Edward Walker

prior to incorporation is typically assigned to the company as part of the founder’s restricted stock purchase agreement (or a separate assignment agreement). Moreover, I recently saw this problem in the context of the sale of startup we were representing. electronic files, prototypes, customer lists, etc.). code, a patent, etc.)

IP 40
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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Finance | Tuesdays. Sales & Marketing | Wednesdays. Financing a Small Business. Financing A Small Business. Personal Finance. SALES & MARKETING. Graham also pushes for common stock, the right to participate in future funding rounds to preserve the size of the stake, and a guaranteed seat on the board.

Arizona 40
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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

This post is the third part of a three-part primer on convertible note seed financings. Part 1, entitled “ Everything You Ever Wanted To Know About Convertible Note Seed Financings (But Were Afraid To Ask) ,” addressed the basics. Part 2, entitled “ Convertible Note Seed Financings: Econ 101 for Founders ,” addressed the economics.

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Do It Right The First Time, Part II: Visit the Doctor or House Call?

Gust

Take any steps needed to qualify Newco to conduct the business it plans to conduct wherever it’s located (for example, a filing made in California qualifying a Delaware corporation to do business there if the management team is located in San Francisco). Make escrow arrangements for restricted stock (i.e., Office and equipment leases.