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

Gust

I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months).

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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