Convertible Debt is an alternative to equity fundraising. The investor “lends” the startup money at a reasonable interest rate and with a maturity date in the 12-24 month range (usually). The understanding and intent of the investor and company is not for the startup to repay the debt, but rather for that debt to convert into equity at a discount to the next round. A convertible debt round typically includes a Convertible Note and a Convertible Note Purchase Agreement.Term Sheets 101: Convertible Debt vs. Equity Term Sheets 101 Podcast Questions from Last Night’s TeXchange Q&A
Who are these people?
With several entrepreneurs in our ranks, we understand what goes into building a business. It’s much more than turning an idea into revenues. It takes preparation, planning, sacrifice, and adaptability. And once you’ve given everything you have, occasionally the tide changes and you have to re-think your entire strategy. With hundreds of successful startups as clients, we thrive on turning an initial consultation into a successful, long-term relationship. So give us a call and let’s get started.