Startup Company Lawyer

AUGUST 31, 2012

Ted Wang believes that the “reason that capped convertible debt is the current market leader is that entrepreneurs have been conditioned over time to believe that convertible debt is (a) faster (b) cheaper and (c) better for them than equity investment.” The YC Series AA documents contain similar provisions.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

K9 Ventures

MARCH 23, 2011

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!?

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Austin Startup

MAY 17, 2017

Given that the time from formation to Series A has stretched out significantly for many companies in the market — due to pre-seed, seed, seed plus, seed premium, series seed, seed platinum diamond, whatever-you-want-to-call-not-Series A rounds. Do not dish out Board observer rights lightly.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48