Tag Archives: Convertible Debt

Understanding the Limits of Convertible Debt Seed Financing Structures

While Convertible Debt with a “kicker” of some sort (typically either in the form of warrants or a discount on the conversion price) was first used primarily as a structure for bridging companies between rounds of traditional venture capital financing, … Continue reading

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Act 255 Tax Credits and …. Convertible Equity

Active angel and venture investors in Wisconsin are generally familiar with Act 255, a state law that provides a tax credit for investors in the equity of qualifying emerging technology businesses.  In cases where an investment is made before a … Continue reading

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Thoughts on Convertible Debt Valuation Caps

Convertible debt with an equity kicker – typically either in the form of warrant coverage or a discount on the conversion rice – is a common vehicle for seed stage financings.  As people on both sides of these deals have … Continue reading

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The Good Angel Investor (Part 1): Doing the Deal

At a time when lean startups often require considerably less than $1 million dollars to develop the proverbial minimum viable product and even validate the same with some customers, angel investors are playing an increasingly important role in startup financings.  … Continue reading

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Convertible What?

For some time, now, convertible debt has been the poison of choice for seed financings by angel investors.  Basically, these deals involve the investor providing capital in exchange for a note that automatically converts into equity at a future financing … Continue reading

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