Knowledge Is Power: Convertible Note Financing Terms, Part II
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. Let’s dive in, taking it from the top: Type of Security : Convertible Promissory Notes, bearing interest at a simple interest rate of 8%. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.