Chandler Waits is a Nashville-based startup and venture capital attorney at the law firm of Riggs Davie PLC. He works as outside general counsel to a number of high-growth companies across the southeast and is passionate about seeing new businesses grow and thrive. Chandler provides legal counsel to clients on a broad range of general corporate matters at all stages of the business life cycle - from entity formation, to a debt or equity financing round, to a company sale or other liquidity event.
Understanding the Key Features of a Convertible Note Offering
Because a startup investor’s strategy is fundamentally high-risk high-reward, convertible notes look much different than a traditional bank loan to a small business. Therefore, the deal terms of a convertible note offering differ significantly from more traditional forms of debt financing and are more negotiable and less standardized.
Why Startups Use Convertible Notes
What are the primary benefits for founders and their investors to opt for a convertible note offering? This post reviews the key benefits of the convertible note structure to determine if it is right for your company.