Conversion Equity Information Rights Small Business 
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. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds.
K9 Ventures
MARCH 23, 2011
I may be well be in the minority in the Valley to think this way — especially so as a seed stage investor — but I have a strong preference for doing priced equity rounds for funding companies at any stage. The typical fix for this problem is to put in a cap in the note for the pre-money price for conversion.
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