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What is convertible equity (or a convertible security)?

Startup Company Lawyer

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.

A primer on convertible notes, convertible securities, and equity

Hippoland

Convertible notes In the 2000s, however, the cost to start a software company decreased dramatically. Convertible securities are not loans.

Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won.

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Convertible Debt Financing. Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.”

The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. Convertible Securities.

Anatomy of a Term Sheet: Conversion and Anti-dilution

VC Ready Blog

In this post we look at when an investor’s preferred stock may or must convert to common stock, and how the conversion ratio may be adjusted in certain circumstances. Preferred stock typically converts to common stock either: (a) at the option of the stockholder (“Optional Conversion”); or. (b) Anti-dilution Provisions.

Dear elizy: an investor wants to invest when we have a lead.  what does that mean?

Hippoland

You can certainly feel free to raise your round by setting your own terms on standard convertible notes or convertible securities.

SEC Gives VC and Smaller Private Fund Managers Limited Relief from Investment Adviser Registration

VC Deal Lawyer

[Guest Post] By Keith S. Marlowe, Esq. Background. Private Fund and VC Exemptions. What is a “venture capital fund” (according to the SEC)?

SEC 4

Do you need a lead investor in your seed round?

Hippoland

Get a standard convertible note (or convertible security such as 500 Startups’ KISS A), and fill it out. Now what?

Anatomy of a Term Sheet: Conversion and Anti-dilution

VC Ready Blog

In this post we look at when an investor’s preferred stock may or must convert to common stock, and how the conversion ratio may be adjusted in certain circumstances. Preferred stock typically converts to common stock either: (a) at the option of the stockholder (“Optional Conversion”); or. (b) Anti-dilution Provisions.

Raising Capital? 3 Tips for Entrepreneurs – Part 2

Scott Edward Walker

Tip #1: Only Sell Securities to “Friends & Family” as a Last Resort. a set value at which the notes convert). How is this done?