When you’re ready to incorporate, you’ll need to give some thought to the proper equity structure for your business. Because equity is a currency startups can trade for money or services, your company’s initial equity structure should take into account your plans for near-term growth. How many shares should be authorized? MORE >>

When you’re ready to incorporate, you’ll need to give some thought to the proper equity structure for your business. Because equity is a currency startups can trade for money or services, your company’s initial equity structure should take into account your plans for near-term growth. How many shares should be authorized? MORE >>

When you’re ready to incorporate, you’ll need to give some thought to the proper equity structure for your business. Because equity is a currency startups can trade for money or services, your company’s initial equity structure should take into account your plans for near-term growth. How many shares should be authorized? MORE >>

Convertible debt is an investment that “converts&# into equity in the future usually at a discount to your next funding round price and sometimes has a “cap&# (maximum price). priced/valued preferred stock financing)?&#. prefer equity to convertible debt): If you’re an early stage investor (e.g. MORE >>

Convertible debt with a price cap seems to be the preferred structure for early-stage financings. One super-angel I talked to told me that while a year ago these caps “approximated what I’d pay in equity” that they’re now “33% higher than what I’d normally agree to pay now.”. Seth Levine asks, “ Has convertible debt won? MORE >>