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What is convertible equity (or a convertible security)?

Startup Company Lawyer

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.

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Should you raise on convertible notes or do an equity round?

Hippoland

A reader named Turner Dean recently asked me whether it’s better to raise seed money on convertible notes or straight-up equity. In general, I’m a big fan of convertible notes or convertible securities for seed stage founders. What major terms you should look for / be aware of / ask for?

Equity 48
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The Legal Side of Entrepreneurship

YoungUpstarts

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. Convertible Securities.

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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? Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.”

Finance 134
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Seed rounds are dead

Hippoland

Here’s what’s happening in the equity world (from my perspective): 1) Token sales in the crypto-world do affect “equity” raises. (I I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This leads me to point #3. E.g. $200k on $3m.

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Seed rounds are dead

Hippoland

Here’s what’s happening in the equity world (from my perspective): 1) Token sales in the crypto-world do affect “equity” raises. (I I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This leads me to point #3. E.g. $200k on $3m.

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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing. In most cases, an early stage startup will raise seed capital from more than one investor.

Finance 79