Convertible Note Seed Financings: Founders Beware!
Scott Edward Walker
MAY 15, 2012
What Happens If a Startup is Acquired Prior to the Note’s Conversion to Shares of Preferred Stock? One of the tricky issues that founders must address in the note is what happens if their startup is acquired prior to the note’s conversion (and prior to the note’s maturity date, as discussed below). 3) Premium (Intermediate Approach).
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