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.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Gust

OCTOBER 5, 2011

This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing. At least one well-known Silicon Valley venture accelerator is using a document referred to as a “ convertible security ” rather than “convertible promissory note.” This paragraph is the heart of the whole deal.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Business Plan Blog

NOVEMBER 13, 2013

Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.” Convertible Debt” is a loan, which is automatically converted to equity at maturity or upon the closing of a round of financing. Bridge notes/loans are an example of convertible debt.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93