We’ve completed our series on convertible debt and hope that you enjoyed it. If we ever get around to writing a second edition of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist we’ll be sure to include this as well. If you go to the resources section of Ask the VC we’ve included standard forms used in a variety of venture deals. As of this posting, we’ll include some standard convertible debt documents subject to the disclaimer that we aren’t you lawyers and make no reps or warranties with respect to these documents, so use at your own risk. Related posts (see original pos
. . . → Read More: Convertible Debt – Wrap Up
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Recently, several entrepreneurs and investors have asserted to me that they don’t think the terms on a convertible debt deal matter much. I was perplexed by the statement and asked each of them to tell me more. In every case, the person hadn’t really thought through the issues. Rather, they were just spouting what they believed was conventional wisdom about terms for seed deals. In one of the entrepreneur cases, I explained how it was likely that they were going to be on the wrong side of the valuation discussion in the next financing based on one of the terms. In one of the investor cases, I We launched our company about six months ago, and we have a couple of angel investors lined-up for about $300,000. We don’t know if we should sell t Here you will find the general form of a convertible note. Also, by browsing the entire convertible note section on this blog, you will find answers I, like most investors, have a strong point of view on the topic — and wanted to share my thoughts. In general, I have a strong preference for Pr Convertible debentures are debt instruments that convert into equity at triggering events. Angels and other early stage investors use convertible deb The question of whether angel investments in early stage companies should be in the form of a loan that converts (usually at a discount) into the equ Last month, in my article about debt and equity financing, I mentioned another solution that some entrepreneurs have found to be a happy middle groun Convertible debentures are debt instruments that convert into equity at triggering events. Angels and other early stage investors use convertible deb Generally speaking, I think that the founders of a startup company are probably better off with a convertible note financing over a Series A financin |
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