You are a new startup and you need to raise some capital. You have a great idea but no money. A convertible note seems like the way to go, but you are not sure how it works, or if and when you will need to pay it back. A convertible note is a short-term debt that will...
Steps to prepare term sheets The terms and conditions between an entrepreneur and an investor, as well as other important details, can all be found in a term sheet. This relationship between a startup entrepreneur and investors is a very crucial one. Regardless on...
Valuation Cap Convertible notes can be somewhat confusing, and learning the terms under it can lead to even more confusion. Convertible note caps tend to be highly beneficial to those involved, but understanding them can be highly tricky. Convertible note caps...
Convertible notes can be a great source to get a startup off the ground. Convertible notes are debt, or loans, that convert to equity at a later date. And that later date brings up an issue: what happens to that convertible note if a startup fails? When a startup...
Do convertible notes accrue Interest If you are considering starting your own business or have a relatively small company that you are trying to grow, you will likely be seeking outside funding sources. While it may be difficult to get banks to give you the amount of...
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