article thumbnail

What is convertible equity (or a convertible security)?

Startup Company Lawyer

At the maturity date, there is a risk that investors may demand repayment. ” The theory is that the number of seed stage Series A deals led by venture capital firms is decreasing, meaning that it will be difficult for startups to raise a new round of financing. Why convertible equity is better than convertible debt.

article thumbnail

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

I think that there are certain situations where the Series Seed and other stripped down equity financing documents might be appropriate, but I know that there are lots of situations where early-stage investors probably wouldn’t agree to the Series Seed terms. Right of first offer on future financings. Series Seed.

Finance 70