Close
Slant is a new Q&A site that helps you choose what to buy and use.
Get recommendations
Ask a Question and our community will recommend the best Options that meet your actual needs.
Choose the best
Slant crowdsources research to save hours of work. All the information you need to choose is now in one place.
Join the Community
Slant works like a wiki anyone can edit. Help people find the right Option for them by sharing your knowledge.

This question can be improved. You can help by:

  • Adding more Pros and Cons to options.

EditComments Thank

openWhy do you recommend Convertible note?

  • Add a Pro

openWhy don't you recommend Convertible note?

  • Add a Con
Convertible notes are a form of debt that converts into equity given a certain trigger, usually a second round of financing.

Very cheap

Legal fees for convertible notes are usually very cheap and can be done for under $5,000.
0
0

Continuous raising

Convertible notes allow you to bank cheques as they come in, instead of waiting for the entire round to be closed. Organizing investors is akin to he...
0
0

Convertible Notes Also Can Have Multiple Liquidation Preferences

The advantage of variable pricing comes at the cost of multiple liquidation preferences. Mark Suster points out the problems with convertible notes a...
0
0

EditComments Thank

openWhy do you recommend Series Seed?

  • Add a Pro

openWhy don't you recommend Series Seed?

Equity rounds result in an investor being issued stock in exchange for money at a given valuation. In a nutshell, the investors will agree to a sing...

Simplicity

From SeriesSeed.com:The Series Seed Documents are only 30 pages in the aggregate so that an entrepreneur can read and understand them without devoti...
0
0

When you set the price, both sides know what deal they got.

Contrary to the trend of convertible notes with variable pricing, there is actually an advantage to a single price for the deal. From Fred Wilson'...
0
0

No cons added yet

EditComments2 Thank

openWhy do you recommend Convertible Equity?

  • Add a Pro

openWhy don't you recommend Convertible Equity?

Convertible equity is a form of early-stage bridge funding that allows a startup to sell to investors a form of equity security that in many ways res...

Helps Investors Gain Tax Benefits

Convertible equity financings will help Angel investors reap tax benefits through capital gains discounts.
0
0

No Complex Interest Terms

With convertible equity there is no interest paid on the round. This saves the entrepreneur equity and simplifies future fundraising.The lack of com...
0
0

No cons added yet