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What is convertible equity (or a convertible security)?

Startup Company Lawyer

” As a result, Ted introduced the Series Seed preferred stock documents as an alternative to convertible debt for early stage investments. One major concern about convertible debt is that it eventually needs to be repaid if another round of financing doesn’t occur. The problem. Series A) or have to be repaid.

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How to Form a Corporation

Up and Running

Because of its popularity, Delaware is also statistically a popular state for investors to finance businesses. California can be appealing to California-based investors (particularly fast-growth tech companies) despite high income and corporate taxes, and franchise fees for all businesses regardless of size.

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Convertible Note Seed Financings: Econ 101 for Founders

Scott Edward Walker

This post is the second 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 certain basic questions, such as (i) what is a convertible note? (ii) What Is a Conversion Discount?

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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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Equity for Consultants – Keep it Simple!

www.mattbartus.com

First, you’d probably want them to receive common stock, not preferred stock (which is the likely next round). Matt is a lawyer representing technology companies through all phases of their lifecycle, from pre-incorporation, seed & VC financings, exit transactions and IPOs (read more). Recent Posts.

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“Bored” of Directors Can Become Clash of Titans

Gust

Yet I’ve rarely seen entrepreneurs more fired up than when recounting war stories of startups whose founders had control of the company wrested from them, were forced to take financing or compensation deals on outrageously onerous terms , or worst of all, fired from their own companies.

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Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. Ressi, Wilson Sonsini and a top-tier accounting firm (which preferred not to be named) have been working on developing this set of documents for some time now, says Ressi. San Francisco, California.

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