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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. These deal terms are simple but significant. This paragraph is the heart of the whole deal.

Finance 79
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Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

This is the norm for West Coast deals, but it’s often the case in dealing with East Coast investors (more commonly for VC financing rounds rather than angel seed rounds) that the lead investor wants its lawyers to draft the documents. See discussion of amendments below.) merger or acquisition).

Finance 79