Convertible equity is a financing instrument that starts as an equity investment but is structured to convert into a different class of equity in a later priced round (typically converting into preferred stock, often using a valuation cap and/or discount to set the conversion price).
The most common form of convertible equity is the “SAFE”.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
