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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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A primer on convertible notes, convertible securities, and equity

Hippoland

So, in the aggregate, it is possible that you may be required to pay as much as $30k-$50k to get an equity round done. For example, if a startup is raising $1m in a priced round, this means that the startup must find enough investors to in aggregate invest $1m into your company at specified terms within a certain time period.