Negotiating a Convertible Note Financing

starting a hedge fund A convertible note is a hybrid of debt and equity, and it’s a popular form of financing for two main reasons. First, convertible notes are generally easy and cost-effective, because they require little negotiation and paperwork. Second, they allow the parties to put off valuation until a later time, which is useful, because accurately valuing a new company from the outset can be difficult.

Before you venture into a convertible note financing, it’s important to have a strong grasp of the terms of the note and how it will convert to equity.

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5 Questions to Answer As You Prepare Your Startup for a Seed or Angel Round

StartupLast month I wrote about the four stages of startup capital – (1) the seed round, (2) the angel round, (3) the venture round, and (4) the bridge/pre-ipo stage round. This month we’ll take a look at what startups need to do to prepare themselves for a seed or angel round. [Read more…]