A Qualified Financing is typically defined as an equity financing by the startup, for the purpose of raising capital, in which the aggregate of $1,000,000 (this amount can vary per deal) is purchased by investors. A Qualified Financing provision is used in convertible notes to determine the investment threshold required to trigger the Automatic Conversion of the convertible note into equity.
ACCELERATE YOUR STARTUP LAW KNOWLEDGE!
Startup Law doesn’t have to be a confusing maze. The practical knowledge in "Acceleration: What All Entrepreneurs Must Know About Startup Law" will help you make the smart decisions to protect your startup and its future. Available in ebook and hardcover.
Buy the Book on Amazon