How Can Convertible Notes Help a Startup Raise Capital
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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
- 4. HERE IS A FACT…
- 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