Startup Company Lawyer

AUGUST 31, 2012

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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YoungUpstarts

OCTOBER 28, 2015

They also need to decide whether to structure terms as an equity deal or a convertible security deal. “If you’re going to raise $1 million, my advice is to propose a convertible security, because you can get it done quickly and less expensively,” said Schmitz. Convertible Securities.

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Hippoland

AUGUST 17, 2016

Since this is a hefty topic that we could discuss for days, in this post I’ll aim to cover just the pros and cons of each from a founder’s perspective and will NOT cover: What is a convertible note, equity, or convertible security ? What major terms you should look for / be aware of / ask for?

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Hippoland

JANUARY 4, 2017

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! This is another deterrent to investors investing on a convertible note. Convertible securities are not loans.

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Gust

SEPTEMBER 5, 2012

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.” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

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Austin Startup

MARCH 16, 2021

If you win, you will receive a $50,000 investment from Capital Factory in the form of a convertible security ( see the application for more details ). Any software, hardware, or CPG startup located in the greater Houston metropolitan area can apply to participate.

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Business Plan Blog

NOVEMBER 13, 2013

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. In addition to convertible debt, other methods can be used to pay back FFF such as: 1) Fixed repayment schedules tied to company’s future cash flow(s). 2) Giving equity in the company. 3) Giving non-voting stock.

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