Remove Conversion Remove Convertible Security Remove Sales Remove Term Sheet
article thumbnail

What is convertible equity (or a convertible security)?

Startup Company Lawyer

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.

article thumbnail

The Legal Side of Entrepreneurship

YoungUpstarts

Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. They also need to decide whether to structure terms as an equity deal or a convertible security deal. If high U.S.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Houston Startups can Pitch for a $50,000 Venture Investment

Austin Startup

If you win, you will receive a $50,000 investment from Capital Factory in the form of a convertible security ( see the application for more details ). Restaurant Fundraisers | Easy Nonprofit Fundraising Idea | GroupRaise Austin’s Journey Foods uses AI to create sustainability recipes for food manufacturers.

Houston 80
article thumbnail

Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For For a comprehensive tutorial with sample term sheet, see my prior series here at Gust.) Convertible equity does away with interest altogether.

Finance 134