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The Legal Side of Entrepreneurship

YoungUpstarts

by John Vrionis, partner at Lightspeed Venture Partners. They also need to decide whether to structure terms as an equity deal or a convertible security deal. These costs make it preferable to use a convertible security for a raise of this size and to structure as equity financing if you are raising closer to $2 million.

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$100,000 Autonomous Drones & Mobility Investment Challenge

Austin Startup

The challenge will occur on March 10 in partnership with Guinn Partners and the Center for Autonomous Robotics. If you win, you will receive a $100,000 investment from Capital Factory on a convertible security (see application for more details). What is the Center for Defense Innovation?

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

Austin Startup

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 ). They’ve recently partnered with Texas powerhouse grocer H-E-B to produce and sell bread, hot dog buns, and hamburger buns that are virtually zero carb and high in protein and fiber.

Houston 80
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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.” ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. Convertible equity may qualify for preferential tax treatment.

Finance 134
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Do you need a lead investor in your seed round?

Hippoland

Get a standard convertible note (or convertible security such as 500 Startups’ KISS A), and fill it out. A few of my friends’ companies had no lead investors in their seed rounds, and they are now valued at hundreds of millions of dollars. Then start bringing checks in. Now, there are pros and cons to having a lead investor.

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Cap Tables Explained: Guide to Understanding Cap Tables

Board Effect

There’s the owner—maybe a partner or two—but unless employees are offered equity from the get-go, there’s typically not a whole lot of dilution. This gives investors a better idea of a company’s value as well as their share of ownership if all outstanding convertible securities were suddenly exercised. Why do cap tables matter?