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The Legal Side of Entrepreneurship

YoungUpstarts

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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Should you raise on convertible notes or do an equity round?

Hippoland

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 ? In general, I’m a big fan of convertible notes or convertible securities for seed stage founders.

Equity 48
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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).

Finance 134
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Seed rounds are dead

Hippoland

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) At least this is what I would do if I were starting a product-company today. Crowdfunding especially works well if you have a consumer product and you have built up an audience who loves you.

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Seed rounds are dead

Hippoland

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) At least this is what I would do if I were starting a product-company today. Crowdfunding especially works well if you have a consumer product and you have built up an audience who loves you.

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The state of Q2 2018 pre-seed/seed-stage fundraising: Part 1 - crypto version

Hippoland

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. In many cases, you need a community of users already (in addition to a product) in order have a successful token sale. And as an app, I would get a full v1 product and start pulling together community.

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The state of Q2 2018 pre-seed/seed-stage fundraising: Part 1 - crypto version

Hippoland

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. In many cases, you need a community of users already (in addition to a product) in order have a successful token sale. And as an app, I would get a full v1 product and start pulling together community.