article thumbnail

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.

article thumbnail

The Legal Side of Entrepreneurship

YoungUpstarts

This past summer, the Lightspeed Summer Fellowships program invited selected guests to provide aspiring entrepreneurs a perspective into all aspects of starting a new company. The program provides entrepreneurs the resources and mentoring they need to build their companies and develop their skills. Convertible Securities.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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

Austin Startup

The challenge will occur on May 21 at Houston Tech Rodeo in partnership with Houston Exponential and will feature five technology startup finalists from greater Houston that will be evaluated by a panel of successful entrepreneurs and venture capitalists. One will walk away with a $50,000 investment! Application deadline is April 26.

Houston 80
article thumbnail

Seed rounds are dead

Hippoland

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This is great for blockchain entrepreneurs. In fact, Hunter Walk wrote about this greater seed stage here. So we see higher valuations in this space. E.g. $200k on $3m. And that’s life!

article thumbnail

Seed rounds are dead

Hippoland

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This is great for blockchain entrepreneurs. In fact, Hunter Walk wrote about this greater seed stage here. So we see higher valuations in this space. E.g. $200k on $3m. And that’s life!

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing. In most cases, an early stage startup will raise seed capital from more than one investor.

Finance 79
article thumbnail

What early stage fundraising in 2018 looks like?

Hippoland

It will be hard to raise a pre-seed round through traditional methods If you are raising money through traditional methods (such as with angels / micro VCs / VCs) via a convertible note or convertible security or equity deal, it will be a lot harder to raise pre-seed money in 2018. Power is in the hands of the entrepreneur.