Remove Conversion Remove Seed Capital Remove Warrant
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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

In that sense it’s more like a warrant or option with a zero exercise price.). Turn the question on its head: How could it make sense to lend money to a brand new, seed-stage company with no revenue, no products, and no collateral? This is true, although interest is generally paid in stock upon conversion.

Finance 134
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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137