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.

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
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