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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.

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The Legal Side of Entrepreneurship

YoungUpstarts

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

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A primer on convertible notes, convertible securities, and equity

Hippoland

Here’s a quick primer on how investments tend to work in startup companies at the seed stage. Lawyers can charge as much as $10k-$30k (in the US) to draft and execute the legal docs for an equity round, and traditionally, founders are responsible for paying for this as well as investors’ legal costs!

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More Tech Startups are LLCs

Austin Startup

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

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Houston Startups can Pitch for a $50,000 Venture Investment

Austin Startup

Greetings from Houston Mural located in Houston Heights If your startup is located in the Houston region you may be eligible to compete for a $50,000 investment! Startups, submit your application Capital Factory Ventures Application Who Can Apply? They’ve raised $7.2 million in funding to date.

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$100,000 Autonomous Drones & Mobility Investment Challenge

Austin Startup

Austin startup, ZPEG, wins $100,000 Defense Innovation Challenge on June 6, 2019 Robots! If your startup works with anything that walks, rolls, flies, or swims by itself, you might be able to win $100,000! In the first year, successful results in hosting virtual events and helping startups win funding. Autonomous cars!

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

Gust

How to finance a new seed-stage startup? Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.”

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