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.
YoungUpstarts
OCTOBER 28, 2015
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.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Austin Startup
MARCH 16, 2021
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 ).
Gust
SEPTEMBER 5, 2012
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.) A convertible note financing is not a loan in the conventional sense.
Gust
OCTOBER 5, 2011
In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. For those playing at home, you may find it helpful to download the sample term sheet from my firm’s website and follow along with the commentary. In fact, there is a recent variation on this theme.
Business Plan Blog
NOVEMBER 13, 2013
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. can be incorporated in the agreement at the time of financing.
Expert insights. Personalized for you.
73 
Let's personalize your content