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

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 Security 100

Convertible Security IP Technical Review Software Review 100

Austin Startup

MARCH 16, 2021

If you win, you will receive a $50,000 investment from Capital Factory in the form of a convertible security ( see the application for more details ). According to Pitchbook, Capital Factory has been the most active, early-stage investor in Texas since 2010.

Houston 80

Houston San Antonio Dallas Texas 80

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. These deal terms are simple but significant. This paragraph is the heart of the whole deal.

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Finance Preferred Stock Term Sheet Early Stage 79

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.) A convertible note financing is not a loan in the conventional sense.

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Finance Convertible Security Equity Seed Stage 134