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How Can Convertible Notes Help a Startup
Raise Capital
By : Raad Ahmed
April 2015
FUNDRAISING ON STEROIDS…
USING CONVERTIBLE NOTE
BROUGHT TOYOU BY
LAWTRADES
HERE IS A FACT…
FUNDRAISING IS DIFFICULT…
TIME-CONSUMING…
EXHAUSTING…
SCARY…
EXPENSIVE…
...
YOU’RE ALONE AGAINST SO MANY INVESTORS…
…BUT WHAT YOU WANT IS TO GET THE
CHECK AND START GROWINGYOUR STARTUP
THERE ARE 2WAYS TO FUNDRAISE
OPTION A: EQUITY ROUND
Equity is issued to an investor in exchange for his capital
OPTION B: CONVERTIBLE NOTE
Effectively a loan that converts to equity, given to the company by an investor
WHICH SHOULD I CHOOSE…?
IF IT’S A SEED ROUND…
IF IT’S A SEED ROUND…
IT’S THE CONVERTIBLE NOTE!
WHY?
BECAUSE IT’S EASIER AND FASTER TO USE A NOTE
WHY?
NO VALUATION NECCESSARY
You get the check, investor get’s better valuation during the next round
SMALL LEGAL FEES
$2,000 or less, as opposed to up to $30,000 for equity round
Comes from much less
complicated paperwork
NO SHARE-HOLDER’S RIGHTS
No Board Seat, No veto-power, No “Protective Provision”
=
You keep full control of your startup
DIFFERENTIATED PRICING
No matter how many investors, you can negotiate different terms
with each of the interested parties
AND IT ALL HELPS GET THAT CHECK FAST
Address / city / State / zip code
your name
from
amount
purpose
date
memonumber 0152 ...
HOW CAN I DO THAT?
1. FIND AN INVESTOR
2.VISIT
and hire interested, available lawyers
at a price that works for you!
LAWTRADES.COM
LAWTRADES
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How Can Convertible Notes Help a Startup Raise Capital

Convertible Notes are common in Venture Capital. Investors loan funds to a Startup as a round of funding; the capital converts into shares of preferred stock.

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How Can Convertible Notes Help a Startup Raise Capital

  1. How Can Convertible Notes Help a Startup Raise Capital By : Raad Ahmed April 2015
  2. FUNDRAISING ON STEROIDS… USING CONVERTIBLE NOTE
  3. BROUGHT TOYOU BY LAWTRADES
  4. HERE IS A FACT…
  5. FUNDRAISING IS DIFFICULT… TIME-CONSUMING… EXHAUSTING… SCARY… EXPENSIVE… ...
  6. YOU’RE ALONE AGAINST SO MANY INVESTORS…
  7. …BUT WHAT YOU WANT IS TO GET THE CHECK AND START GROWINGYOUR STARTUP
  8. THERE ARE 2WAYS TO FUNDRAISE
  9. OPTION A: EQUITY ROUND Equity is issued to an investor in exchange for his capital
  10. OPTION B: CONVERTIBLE NOTE Effectively a loan that converts to equity, given to the company by an investor
  11. WHICH SHOULD I CHOOSE…?
  12. IF IT’S A SEED ROUND…
  13. IF IT’S A SEED ROUND… IT’S THE CONVERTIBLE NOTE!
  14. WHY?
  15. BECAUSE IT’S EASIER AND FASTER TO USE A NOTE
  16. WHY?
  17. NO VALUATION NECCESSARY You get the check, investor get’s better valuation during the next round
  18. SMALL LEGAL FEES $2,000 or less, as opposed to up to $30,000 for equity round Comes from much less complicated paperwork
  19. NO SHARE-HOLDER’S RIGHTS No Board Seat, No veto-power, No “Protective Provision” = You keep full control of your startup
  20. DIFFERENTIATED PRICING No matter how many investors, you can negotiate different terms with each of the interested parties
  21. AND IT ALL HELPS GET THAT CHECK FAST Address / city / State / zip code your name from amount purpose date memonumber 0152 - 635486565 - 4526589
  22. HOW CAN I DO THAT?
  23. 1. FIND AN INVESTOR
  24. 2.VISIT and hire interested, available lawyers at a price that works for you! LAWTRADES.COM LAWTRADES

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