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Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

Convertible Equity, A Better Alternative To Convertible Debt? There has been no shortage of controversy and criticism around the convertible note, a popular investing vehicle that’s used by seed stage and angel investors. Basically, Convertible Equity removes the repayment at maturity and interest provisions of Convertible Debt.

Equity 87
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An economics lesson for growing companies

Berkonomics

It may not be equity. Venture or angel-financed companies with plenty of working capital sometimes are immune to this working capital need for some time into their growth, but at some point, it will become clear that the cheapest form of finance is not equity in a growing enterprise.

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Startup Tools

steveblank.com

Blogs (VC): Antonio Rodriguez [link] – A very technical VC at Matrix partners who can actually code. Blogs (web development): Giant Robots Smashing Into Other Giant Robots – [link] Company blog of thoughtbot covering Ruby on Rails, HTML, CSS, Javascript, databases, and mobile development.

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

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR).

Finance 70
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Startup Strategy Roundtable: Top 10 Tech Trends To Watch

ReadWriteStart

The company is profitable and has so far raised only $400,000 in friends and family and angel financing. At this point, he can grow organically and leverage channel partners and other creative modes of non-equity financing and preserve equity as much as possible.

Senegal 117
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Growth requires a different kind of capital.

Berkonomics

Venture or angel-financed companies with plenty of working capital sometimes are immune to this need for some time into their growth, but at some point it will become clear that the cheapest form of finance is not equity in a growing enterprise.

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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. Angel financing – just because VCs won’t back this kind of business doesn’t mean angels won’t.