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What is convertible equity (or a convertible security)?

Startup Company Lawyer

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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The Legal Side of Entrepreneurship

YoungUpstarts

This past summer, the Lightspeed Summer Fellowships program invited selected guests to provide aspiring entrepreneurs a perspective into all aspects of starting a new company. The program provides entrepreneurs the resources and mentoring they need to build their companies and develop their skills. Convertible Securities.

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More Tech Startups are LLCs

Austin Startup

The main drivers, from our viewpoint, are: Many tech entrepreneurs no longer view venture capital as an inevitability in their growth path, and have grown skeptical of the traditional “growth at all costs” mindset found in many startup circles; and An increasing number of VCs are growing comfortable with LLCs.

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A primer on convertible notes, convertible securities, and equity

Hippoland

It just didn’t make sense to spend 10% of your round on legal costs and have to wait for months before receiving the money when the angel investors writing the checks were open to moving equally as fast as the entrepreneur. Raising money on a convertible note is fast — you get your money as soon as an investor signs. It’s cheap.

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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Convertible Debt Financing. Since investment in a startup is risky and most people are reluctant to contribute funds, startup entrepreneurs can use different ways to make funding from FFF look less risky. Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.”

Finance 93
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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

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.” This paragraph is the heart of the whole deal.

Finance 79
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Houston Startups can Pitch for a $50,000 Venture Investment

Austin Startup

The challenge will occur on May 21 at Houston Tech Rodeo in partnership with Houston Exponential and will feature five technology startup finalists from greater Houston that will be evaluated by a panel of successful entrepreneurs and venture capitalists. One will walk away with a $50,000 investment! Application deadline is April 26.

Houston 80