Remove Conversion Remove Cost Remove Information Rights Remove Seed Stage
article thumbnail

What is convertible equity (or a convertible security)?

Startup Company Lawyer

” The theory is that the number of seed stage Series A deals led by venture capital firms is decreasing, meaning that it will be difficult for startups to raise a new round of financing. I don’t necessarily agree with all of them, but I think the primary argument is simplicity of documents and legal cost.

article thumbnail

Thoughts on Convertible Notes

K9 Ventures

There has been a lot of noise in the Valley lately about how most seed stage deals are now being done as convertible notes. The typical fix for this problem is to put in a cap in the note for the pre-money price for conversion. What percent of the company should the note holder get on conversion? Why would you do that!?