www.seriesseed.com

DECEMBER 9, 2012

.  That’s because there are not that many issues to negotiate in a simple equity financing.   Based on the comments received, both on the blog and in the many deals in which these documents have been used, I am convinced that the terms of a simple set of equity documents are really not an issue. 

Term Sheet 40

Term Sheet Ratchet Dilution Equity 40

Gust

SEPTEMBER 5, 2012

Convertible equity? The new form of convertible security or “convertible equity” is essentially a convertible note containing most of the usual terms — except it’s been stripped of the features that would make it a loan. How to finance a new seed-stage startup? Convertible debt?

Finance 134

Finance Convertible Security Equity Seed Stage 134

K9 Ventures

MARCH 23, 2011

I may be well be in the minority in the Valley to think this way — especially so as a seed stage investor — but I have a strong preference for doing priced equity rounds for funding companies at any stage. The typical fix for this problem is to put in a cap in the note for the pre-money price for conversion.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

www.seriesseed.com

DECEMBER 9, 2012

You can follow this conversation by subscribing to the comment feed for this post. We went with equity because ivestors would prefer to get equity for the following reasons: 1. Long term capital gains possible for early exit. All of those cost us as much if not more in legal time than the seed round.

Finance 40

Finance Term Sheet Vesting LLC 40

Scott Edward Walker

APRIL 9, 2012

Part 3 will cover certain special issues, such as (i) what happens if the startup is acquired prior to the note’s conversion to equity? (ii) ii) what happens if the maturity date is reached prior to the note’s conversion to equity? A convertible note is short-term debt that converts into equity.

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

techcrunch.com

SEPTEMBER 2, 2012

Convertible Equity, A Better Alternative To Convertible Debt? As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. In the end, Ressi says that Convertible Equity allows startups and investors to have their cake and eat it too. Smartphones.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

Up and Running

APRIL 29, 2014

A lot of the times I hear small businesses say, “Oh, those are awkward conversations, and we don’t want to talk about the negatives.” That’s a little more complicated, because there can be dividends, interest or capital gains, and there’s different tax rates for those. It’s the Medicare tax.

.Net 85

.Net Capital Gains Distribution Puerto Rico 85