article thumbnail

The Legal Side of Entrepreneurship

YoungUpstarts

This past summer, the Lightspeed Summer Fellowships program invited selected guests to provide aspiring entrepreneurs a perspective into all aspects of starting a new company. The program provides entrepreneurs the resources and mentoring they need to build their companies and develop their skills. Convertible Securities.

article thumbnail

A primer on convertible notes, convertible securities, and equity

Hippoland

He/she sets the valuation of your company and terms of the round. It just didn’t make sense to spend 10% of your round on legal costs and have to wait for months before receiving the money when the angel investors writing the checks were open to moving equally as fast as the entrepreneur. Convertible securities are not loans.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Houston Startups can Pitch for a $50,000 Venture Investment

Austin Startup

The challenge will occur on May 21 at Houston Tech Rodeo in partnership with Houston Exponential and will feature five technology startup finalists from greater Houston that will be evaluated by a panel of successful entrepreneurs and venture capitalists. One will walk away with a $50,000 investment! Application deadline is April 26.

Houston 80
article thumbnail

Seed rounds are dead

Hippoland

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This is both greater risk and reward – pre-seed funds can gain more ownership in companies by putting more money into the businesses at lower valuations. So we see higher valuations in this space.

article thumbnail

Seed rounds are dead

Hippoland

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This is both greater risk and reward – pre-seed funds can gain more ownership in companies by putting more money into the businesses at lower valuations. So we see higher valuations in this space.

article thumbnail

Do you need a lead investor in your seed round?

Hippoland

I’ve written before about what every entrepreneur needs to clarify when answering this question. Get a standard convertible note (or convertible security such as 500 Startups’ KISS A), and fill it out. One question that seed investors love to ask is if you have a lead investor in your seed round.

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing. At least one well-known Silicon Valley venture accelerator is using a document referred to as a “ convertible security ” rather than “convertible promissory note.” This paragraph is the heart of the whole deal.

Finance 79