Gust

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. This is true, although interest is generally paid in stock upon conversion. Convertible debt? Convertible equity?

Finance 134
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Keep Term Sheets Simple for Quicker Cash to Spend

Gust

When a company is at its earliest seed stage, the terms tend to be the least complex. Investors may provide money in stages or tranches, based on defined milestones, to decrease investment risk. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Anti-dilution protection.

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Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds.