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

Hippoland

AUGUST 17, 2016

Since this is a hefty topic that we could discuss for days, in this post I’ll aim to cover just the pros and cons of each from a founder’s perspective and will NOT cover: What is a convertible note, equity, or convertible security ? In general, I’m a big fan of convertible notes or convertible securities for seed stage founders.

Equity 48

Equity Convertible Security Silicon Valley Technical Review 48

Hippoland

JANUARY 4, 2017

Here’s a quick primer on how investments tend to work in startup companies at the seed stage. So let’s say a startup raises an equity round from a big VC after raising a convertible note round. How does an angel investor convert his convertible note into equity? Convertible securities are not loans.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.”

Finance 134

Finance Convertible Security Equity Seed Stage 134