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.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Gust

OCTOBER 5, 2011

This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing. At least one well-known Silicon Valley venture accelerator is using a document referred to as a “ convertible security ” rather than “convertible promissory note.”

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Business Plan Blog

NOVEMBER 13, 2013

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). 3) Giving non-voting stock. It gives in depth examples & templates explaining documents like Term Sheet, Cap Table, Convertible Securities plus the importance of 83(b) filing.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Board Effect

MAY 10, 2019

Securities can be broken up across multiple columns based on the company’s share structure. Two of the most popular equity securities found on a cap table are common and preferred stock. Cap tables may also include derivatives such as warrants and options. Funding Rounds: Series & Capital Raised.

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40