<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>Startup Lawyer &#187; Convertible Notes</title>
	<atom:link href="http://startuplawyer.com/category/convertible-notes/feed" rel="self" type="application/rss+xml" />
	<link>http://startuplawyer.com</link>
	<description>Just another WordPress site</description>
	<lastBuildDate>Sat, 08 Jun 2013 01:01:03 +0000</lastBuildDate>
	<language>en-US</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.5.1</generator>
<xhtml:meta xmlns:xhtml="http://www.w3.org/1999/xhtml" name="robots" content="noindex" />
		<item>
		<title>The Rolling Close</title>
		<link>http://startuplawyer.com/convertible-notes/the-rolling-close</link>
		<comments>http://startuplawyer.com/convertible-notes/the-rolling-close#comments</comments>
		<pubDate>Fri, 08 Feb 2013 15:28:42 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>

		<guid isPermaLink="false">http://startuplawyer.com/?p=6703</guid>
		<description><![CDATA[Unlike Series A Rounds, most seed rounds of financing don&#8217;t have all investors fund their investment on the same date. Sometimes it&#8217;s a matter of logistics for investors, but mostly it&#8217;s because the startup is continuously identifying and pitching potential angel investors to join in the seed round. The startup can&#8217;t afford to wait to [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/the-rolling-close/feed</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Price Cap Liquidation Preference Windfall Regulators</title>
		<link>http://startuplawyer.com/convertible-notes/price-cap-liquidation-preference-windfall-regulators</link>
		<comments>http://startuplawyer.com/convertible-notes/price-cap-liquidation-preference-windfall-regulators#comments</comments>
		<pubDate>Wed, 23 Jan 2013 05:16:15 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>

		<guid isPermaLink="false">http://startuplawyer.com/?p=6653</guid>
		<description><![CDATA[Most convertible notes have a price cap as a feature term. Depending on the delta between the price cap and the pre-money valuation of the qualified equity financing, the convertible note investors could receive a windfall in terms of liquidation preference. The Potential Problem Let&#8217;s say Series A investors invest at a pre-money valuation that [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/price-cap-liquidation-preference-windfall-regulators/feed</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Convertible Note Transaction Documents</title>
		<link>http://startuplawyer.com/convertible-notes/convertible-note-transaction-documents</link>
		<comments>http://startuplawyer.com/convertible-notes/convertible-note-transaction-documents#comments</comments>
		<pubDate>Tue, 17 Jul 2012 14:03:19 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>

		<guid isPermaLink="false">http://startuplawyer.com/?p=4191</guid>
		<description><![CDATA[It&#8217;s a common misconception that the &#8216;convertible note&#8217; is the only legal document used in a convertible debt financing. I often receive emails from entrepreneurs asking for a &#8216;sample convertible note&#8217; which I assume they are planning to use on their own. In addition to the convertible note, a startup will also need to draft [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/convertible-note-transaction-documents/feed</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Convertible Note Interest</title>
		<link>http://startuplawyer.com/convertible-notes/convertible-note-interest</link>
		<comments>http://startuplawyer.com/convertible-notes/convertible-note-interest#comments</comments>
		<pubDate>Tue, 14 Feb 2012 04:55:46 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>

		<guid isPermaLink="false">http://startuplawyer.com/?p=5549</guid>
		<description><![CDATA[The principal invested via a convertible note should accrue interest, but the rate of interest should be lower than a typical non-convertible loan from an investor. The range I see is 5-8% for convertible notes. If a potential investor plays hardball and insists on a high interest rate (i.e., 10% or more), then you might [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/convertible-note-interest/feed</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Convertible Note Term Sheets</title>
		<link>http://startuplawyer.com/convertible-notes/convertible-note-term-sheets</link>
		<comments>http://startuplawyer.com/convertible-notes/convertible-note-term-sheets#comments</comments>
		<pubDate>Tue, 24 Aug 2010 14:30:44 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>
		<category><![CDATA[convertible note]]></category>
		<category><![CDATA[Term Sheet]]></category>

		<guid isPermaLink="false">http://startuplawyer.com/?p=4197</guid>
		<description><![CDATA[Just like the preferred equity financing process, the convertible debt financing process can start with a term sheet, rather than a full set of financing documents. A convertible note term sheet is beneficial because it postpones a lawyer from cranking out a full set of docs until consensus is reached regarding the convertible debt offering&#8217;s [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/convertible-note-term-sheets/feed</wfw:commentRss>
		<slash:comments>5</slash:comments>
		</item>
		<item>
		<title>Keeping a Seed Financing Round Open</title>
		<link>http://startuplawyer.com/convertible-notes/keeping-a-seed-financing-round-open</link>
		<comments>http://startuplawyer.com/convertible-notes/keeping-a-seed-financing-round-open#comments</comments>
		<pubDate>Mon, 23 Aug 2010 15:02:52 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>
		<category><![CDATA[convertible note]]></category>
		<category><![CDATA[open round]]></category>
		<category><![CDATA[raising capital]]></category>

		<guid isPermaLink="false">http://startuplawyer.com/?p=4176</guid>
		<description><![CDATA[Startups don&#8217;t want to wait until every investor is ready before closing on a seed financing round. First, the roster of investors will not be identified and/or cutting checks on the same day. Second, what startup wants to wait on cash? Therefore, most seed financings allow for an initial close (i.e., that first investor check) [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/keeping-a-seed-financing-round-open/feed</wfw:commentRss>
		<slash:comments>5</slash:comments>
		</item>
		<item>
		<title>The Convertible Note Discount Price Cap</title>
		<link>http://startuplawyer.com/convertible-notes/the-convertible-note-discount-price-cap</link>
		<comments>http://startuplawyer.com/convertible-notes/the-convertible-note-discount-price-cap#comments</comments>
		<pubDate>Wed, 23 Jun 2010 00:48:58 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>
		<category><![CDATA[Angel Investors]]></category>
		<category><![CDATA[convertible note]]></category>
		<category><![CDATA[price cap]]></category>

		<guid isPermaLink="false">http://startuplawyer.com/?p=3923</guid>
		<description><![CDATA[If you follow this blog, you know that I think convertible debt is a good structure for a startup&#8217;s angel round. The main feature of the convertible note is that the debt investment made by the angel investor will typically later convert into equity. For this article, let&#8217;s assume this equity is the Series A [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/the-convertible-note-discount-price-cap/feed</wfw:commentRss>
		<slash:comments>40</slash:comments>
		</item>
		<item>
		<title>How to Set Conversion Discounts in Convertible Notes</title>
		<link>http://startuplawyer.com/convertible-notes/how-to-set-conversion-discounts-in-convertible-notes</link>
		<comments>http://startuplawyer.com/convertible-notes/how-to-set-conversion-discounts-in-convertible-notes#comments</comments>
		<pubDate>Fri, 18 Dec 2009 18:27:49 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>
		<category><![CDATA[conversion discount]]></category>
		<category><![CDATA[convertible note]]></category>
		<category><![CDATA[seed capital]]></category>
		<category><![CDATA[series a]]></category>

		<guid isPermaLink="false">http://thestartuplawyer.com/?p=1619</guid>
		<description><![CDATA[Convertible promissory notes do not include a stated pre-money valuation. Instead, the convertible note seed investor and startup agree that the pre-money valuation for the convertible note investment will be determined by the pre-money valuation the startup receives at the Series A round. However, the convertible note investor does not receive the Series A pre-money [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/how-to-set-conversion-discounts-in-convertible-notes/feed</wfw:commentRss>
		<slash:comments>6</slash:comments>
		</item>
		<item>
		<title>How Convertible Debt Works</title>
		<link>http://startuplawyer.com/convertible-notes/how-convertible-debt-works</link>
		<comments>http://startuplawyer.com/convertible-notes/how-convertible-debt-works#comments</comments>
		<pubDate>Fri, 18 Dec 2009 00:36:57 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>
		<category><![CDATA[convertible note]]></category>
		<category><![CDATA[qualified financing]]></category>
		<category><![CDATA[seed capital]]></category>

		<guid isPermaLink="false">http://thestartuplawyer.com/?p=1593</guid>
		<description><![CDATA[Convertible debt is a type of security frequently issued by startups when raising seed capital. With convertible debt, the startup issues the seed investor a promissory note, for the investment amount, that contains a conversion feature. The conversion feature is the mechanism by which the debt (the promissory note) will convert to equity (new shares [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/how-convertible-debt-works/feed</wfw:commentRss>
		<slash:comments>29</slash:comments>
		</item>
		<item>
		<title>Selling Your Startup with Convertible Debt</title>
		<link>http://startuplawyer.com/convertible-notes/selling-your-startup-with-convertible-debt</link>
		<comments>http://startuplawyer.com/convertible-notes/selling-your-startup-with-convertible-debt#comments</comments>
		<pubDate>Wed, 24 Dec 2008 03:28:21 +0000</pubDate>
		<dc:creator>Ryan Roberts</dc:creator>
				<category><![CDATA[Convertible Notes]]></category>
		<category><![CDATA[acquisition]]></category>
		<category><![CDATA[Angel Investors]]></category>
		<category><![CDATA[convertible note]]></category>

		<guid isPermaLink="false">http://www.thestartuplawyer.com/?p=743</guid>
		<description><![CDATA[I previously mentioned that convertible debt is a good way to raise capital for most startups. The main reason why convertible debt is beneficial for startups is that it delays coming up with a valuation figure at the seed stage&#8211;the valuation conundrum is essentially punted to the Series A (or &#8220;qualified financing&#8221; stage). But what [...]]]></description>
		<wfw:commentRss>http://startuplawyer.com/convertible-notes/selling-your-startup-with-convertible-debt/feed</wfw:commentRss>
		<slash:comments>2</slash:comments>
		</item>
	</channel>
</rss>
