Convertible Note Questions


2 Votes
2 Answers
3.38K Views
Raising a convertible note round on a rolling basis

I was told that one of the benefits of doing a convertible note round is that you can do it on a rolling basis? Does that mean we can give different investors different discounts and caps? (ie:...

asked Jul 26 '13 at 03:27
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Sam
11 points

1 Votes
1 Answers
2.24K Views
Equity options/logistics for first hire

We're in the process of hiring our first employee and trying to figure out logistics given that we're making the employment offer in parallel with our seed funding. All of our current funding up to...

asked Jul 6 '13 at 11:07
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User26911
6 points

1 Votes
2 Answers
1.94K Views
Low angel round cap hurt series A?

If you have a relative low cap on a convertible note angel round, will that hurt your chances of getting series A financing?

asked Jul 12 '13 at 09:06
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Tom
6 points

0 Votes
1 Answers
1.96K Views
How to set convertible note cap fairly?

We're a software startup and are raising a convertible note seed round. The investors insist on having both a discount and a cap. I have a pretty good understanding of how the discount works but...

asked Jun 22 '13 at 08:05
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Steve
6 points

0 Votes
1 Answers
2.42K Views
When one of three founders add a capital round alone, how should he be compensated? Note or Equity

We have a startup with 3 co-founders each having 33.3% of the company. So far we have raised 100k internally and split it 3 ways. Now we wanted to raise another 100k round internally. If one...

asked Aug 17 '12 at 00:18
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Calman5555
1 point

2 Votes
4 Answers
5.99K Views
stock options or convertible notes?

I will be joining as a senior developer on a startup and I will be working 20 hours a week remotely. I have a day job which pays my bills now. The company is not funded yet so we will not be given...

asked Apr 5 '12 at 01:59
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Java Mouse
113 points

1 Votes
2 Answers
2.06K Views
Can you issue a Convertible Note to be converted prior to series A?

Situation: Closed initial kick-start seed investment with angel investor. Deal was done on an equity basis equaling a postmoney valuation of 400k. Have a few FFF who would like to invest small...

asked Oct 19 '11 at 12:53
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Eric Littleton
107 points

2 Votes
4 Answers
3.14K Views
How have you gone about creating your convertible note?

My startup company has put together a group of friends and family investors who will be investing in the form of a convertible note. I've done quite a bit of research on convertible notes, but am...

asked Aug 15 '11 at 01:29
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Nick Branstator
11 points

3 Votes
1 Answers
2.82K Views
term sheet vs convertible note

I have been talking to the people in angel circles and it seems that everyone takes only term sheets; and convertible notes are almost like an insult. My questions is: when I can start offering...

asked Jan 18 '11 at 03:11
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Mat Banik
325 points

2 Votes
2 Answers
5.7K Views
Can S Corporations issue convertible notes/debt?

I was reading this answer and am a little confused - how is convertible debt precluded by being an S corp? (rather than C corp) Is this just an overstatement? I understand that one typically would...

asked Jan 20 '11 at 12:26
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Tim J
8,346 points

3 Votes
4 Answers
7.81K Views
I am looking for a simple investor agreement for a convertible note

Our self-funding is running out within 2 months and we are probably a month to 4 months away from revenue. We hope we won't need financing, but we have to be prepared. I've already spoken with a...

asked Mar 9 '10 at 15:02
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Tim J
8,346 points