Startup Company Lawyer

AUGUST 31, 2012

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.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Austin Startup

NOVEMBER 6, 2017

Many angel investors, and also strategic investors, are comfortable investing in LLCs, particularly under a convertible security structure that doesn’t immediately result in equity holdings. Everyone is trying to be a billion-dollar company that will eventually get acquired or go IPO.

Delaware 48

Delaware LLC Startup Silicon Valley 48

Gust

SEPTEMBER 5, 2012

I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months).

Finance 134

Finance Convertible Security Equity Seed Stage 134

Business Plan Blog

NOVEMBER 13, 2013

The return only happens when there is an exit via acquisition or an IPO. Bridge notes/loans are an example of convertible debt. Convertible debt provides startups with a relatively easy way to procure financing. Various terms such as price cap, discount, conversion to equity, etc., Pros and Cons of Convertible Debt.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93