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.

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Convertible Security Equity Security Preferred Stock 73

YoungUpstarts

OCTOBER 28, 2015

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. Convertible Securities.

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Convertible Security IP Technical Review Software Review 100

Hippoland

JANUARY 4, 2017

Here’s a quick primer on how investments tend to work in startup companies at the seed stage. Newer VC firms, though, typically do not pass their costs to their startups, which is much more progressive. So, startups started raising seed rounds — rounds that took place before a series A. The results are binary.

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Convertible Security Equity Security Silicon Valley 48

Business Plan Blog

NOVEMBER 13, 2013

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Convertible Debt Financing. Bridge notes/loans are an example of convertible debt. Raising Seed Capital.

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Finance Accredited Investor Angel Investor Seed Capital 93

Gust

SEPTEMBER 5, 2012

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.” How can this possibly make sense?

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Finance Convertible Security Equity Seed Stage 134

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. At least one well-known Silicon Valley venture accelerator is using a document referred to as a “ convertible security ” rather than “convertible promissory note.”

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Finance Preferred Stock Term Sheet Early Stage 79

Board Effect

MAY 10, 2019

In the early days, tracking the percentage of ownership in a startup is easy. Things can escalate quickly, however, when a startup decides to seek investors. A well-kept cap table is a necessary ingredient of proper recordkeeping long after a startup has “started up”. Why do cap tables matter?

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Cap Table Liquidation Preference Dilution Liquidity Event 40