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Everything You Ever Wanted to Know About Convertible Note Seed Financings (But Were Afraid To Ask) – Part 1

Scott Edward Walker

Part 3 will cover certain special issues, such as (i) what happens if the startup is acquired prior to the note’s conversion to equity? (ii) ii) what happens if the maturity date is reached prior to the note’s conversion to equity? A convertible note is short-term debt that converts into equity.

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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

This part will address certain tricky issues. What Happens If a Startup is Acquired Prior to the Note’s Conversion to Shares of Preferred Stock? 2) Conversion Right (Investor-Friendly). Part 2, entitled “ Convertible Note Seed Financings: Econ 101 for Founders ,” addressed the economics.

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