Topic
Convertible Notes
20 published works
Blog of Digital Law and New Technologies
Most Favored Nation (MFN) Clauses in Investment Rounds: Benefits, Risks, and Negotiation Limits
Startup financing requires striking a balance between protecting investors and preserving the company’s ability to raise additional capital. In this context, the Most Favored Nation (MFN) clause has become a…
Traverse Legal Expert Articles
Negotiating SAFEs and Convertible Notes with Long-Term Control in Mind
Key Insights at a Glance SAFEs and convertible notes deliver capital fast, skipping valuation disputes and sidestepping the drag of priced rounds. That simplicity tempts founders, but it carries hidden…
New York Venture Hub
Beyond the Discount: Why Maturity Terms Matter in Convertible Notes
When negotiating convertible notes, parties typically focus on the terms of conversion upon an equity financing, most notably the discount and valuation cap. This is understandable inasmuch as the not-so-hidden…
w(x) blog
What Type of Security Should You Use to Fund Your Venture? Part 2
By Evan Kipperman, Adam Silverman
In this blog series, we review the most common types of securities used in financing emerging companies, and highlight key issues worth considering for each. Over the course of four…
New York Venture Hub
Planting Seeds: New Standard Convertible Note Could Disrupt Angel Investing
In the world of early stage investing, there exists a range of structures from the most founder friendly to the most investor friendly. The most investor-friendly structure involves some type…
Startup Law Blog
SAFE agreement and convertible notes in Malaysia update
By Izwan
Earlier this week at the Malaysia Venture Forum 2023 the SC chairman said that an exemption will be introduced to further clarify the use of the Simple Agreement For Future…
StartupProgram.com
What is a Cap for SAFEs and Convertible Notes?
Now that you’ve formed your business and you and your fellow founders are hard at work building your startup, if you are like most burgeoning businesses, at some point you…
Allens Insights
Fundraising – making the most of convertible notes
By Allens
Balancing downside risk and upside potential 6 min read A noticeable fundraising trend in the first half of calendar year 2023 has been ASX-listed entities issuing convertible notes to strategic…
M&A Insights
Could Corporate Convertible Loans be Subject to Criminal Usury Laws in New York?
By Brock T. Niezgoda, Divya Ahuja
In Adar Bays, LLC v. GeneSYS ID, Inc., the New York Court of Appeals (the “Court”) held that the conversion price in a convertible option could be classified as interest…
StartupProgram.com
Why SUP and Why SUP’s Debt Equity Model (Cap Table) vs. Carta or Captable.io?
People always ask me, “What is SUP?” and “Why is its Debt Equity Model (Cap Table) relevant when I can build my cap table using an online tool?” Here is…