terms Convertible Security Related Topics 
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.
YoungUpstarts
OCTOBER 28, 2015
Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Convertible Securities.
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Hippoland
JANUARY 4, 2017
For example, if a startup is raising $1m in a priced round, this means that the startup must find enough investors to in aggregate invest $1m into your company at specified terms within a certain time period. He/she sets the valuation of your company and terms of the round. Convertible securities are not loans.
Hippoland
AUGUST 17, 2016
Since this is a hefty topic that we could discuss for days, in this post I’ll aim to cover just the pros and cons of each from a founder’s perspective and will NOT cover: What is a convertible note, equity, or convertible security ? What major terms you should look for / be aware of / ask for?
Gust
OCTOBER 5, 2011
In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. For those playing at home, you may find it helpful to download the sample term sheet from my firm’s website and follow along with the commentary. These deal terms are simple but significant.
Austin Startup
NOVEMBER 6, 2017
Speaking in broad terms, this “disadvantage” of the C-Corp structure has not deterred tech startups for one simple reason: the corporate level tax is on profits, and many tech startups don’t intend to be truly profitably any time soon. C-Corps have 2 “layers” of tax: corporate-level tax, and then tax at the shareholder level.
Gust
SEPTEMBER 5, 2012
I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For For a comprehensive tutorial with sample term sheet, see my prior series here at Gust.) By contrast, convertible equity is only a contractual right to acquire stock in the future, like an option or warrant.
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