Startup Company Lawyer

AUGUST 31, 2012

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

YoungUpstarts

OCTOBER 28, 2015

They also need to decide whether to structure terms as an equity deal or a convertible security deal. “If you’re going to raise $1 million, my advice is to propose a convertible security, because you can get it done quickly and less expensively,” said Schmitz. ” The Cost of Financing.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Hippoland

JANUARY 4, 2017

Lawyers can charge as much as $10k-$30k (in the US) to draft and execute the legal docs for an equity round, and traditionally, founders are responsible for paying for this as well as investors’ legal costs! And the legal costs were just a small drop in the bucket compared to these round sizes. Convertible securities are not loans.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

Gust

SEPTEMBER 5, 2012

I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months).

Finance 134

Finance Convertible Security Equity Seed Stage 134