Seed Rounds

Convertible Note Maturity Date Terms

Convertible notes are a very common startup financing method. Convertible notes contain a maturity date provision at which point the notes are to be repaid with interest.  This is usually set at 18-24 months after the first convertible note investment. However, repayment of the notes upon the maturity date is usually not a great scenario for the … Continue reading

Glorified Employees

Standard seed financing terms have moved beyond the boundaries of the Bay Area, but they haven’t completely reached all parts of the globe. Of course seed investors should look to protect their investment, but some seed investors (whether in Dallas or Denmark) may look at your startup as a ‘distressed investment’ and seek terms that … Continue reading

The Rolling Close

Unlike Series A Rounds, most seed rounds of financing don’t have all investors fund their investment on the same date. Sometimes it’s a matter of logistics for investors, but mostly it’s because the startup is continuously identifying and pitching potential angel investors to join in the seed round. The startup can’t afford to wait to … Continue reading