SlideShare a Scribd company logo

Convertible Debt for Startups

•Download as PPT, PDF•
•
R
Ricklawboston

Convertible Debt Financing for Startups

1 of 12
Convertible Debt Financing How it Works 11.2.11 Benjamin M. Hron [email_address] 617.449.6584 @HronEsq Rick M. Lucash [email_address] 617.449.6568 @RickLucash
Convertible Debt Essentials ,[object Object],[object Object],[object Object]
Cost - Benefit ,[object Object],[object Object],[object Object],[object Object]
Cycles and Styles ,[object Object],[object Object],[object Object],[object Object],[object Object]
How it Works ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Basic terms and Norms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cap on Conversion Value ,[object Object],[object Object]
Conversion – When and How ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Complexities ,[object Object],[object Object],[object Object],[object Object],[object Object]
Subtleties ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Subtleties – continued ,[object Object],[object Object],[object Object],[object Object],[object Object]
McCarter & English LLP Benjamin M. Hron [email_address] 617.449.6584 @HronEsq Rick M. Lucash [email_address] 617.449.6568 @RickLucash Questions?

Recommended

Convertible Debt - How it Works
Convertible Debt - How it WorksConvertible Debt - How it Works
Convertible Debt - How it Worksbhron
 
Convertible Debt Simplified
Convertible Debt SimplifiedConvertible Debt Simplified
Convertible Debt SimplifiedBen Littauer
 
Burkland Associates Convertible Note Presentation
Burkland Associates Convertible Note PresentationBurkland Associates Convertible Note Presentation
Burkland Associates Convertible Note Presentationjburkland
 
Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)
Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)
Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)ideatoipo
 
Convertible Note Presentation
Convertible Note PresentationConvertible Note Presentation
Convertible Note PresentationNeil Milano
 
Deal Structures for Early Stage Financing
Deal Structures for Early Stage FinancingDeal Structures for Early Stage Financing
Deal Structures for Early Stage Financinglerchearly
 
Deciphering SAFE, Convertible Notes & Term Sheets
Deciphering SAFE, Convertible Notes & Term SheetsDeciphering SAFE, Convertible Notes & Term Sheets
Deciphering SAFE, Convertible Notes & Term SheetsTytus Cytowski
 
Before Series A - Convertible Note and Series Seed Funding for Startups
Before Series A - Convertible Note and Series Seed Funding for Startups Before Series A - Convertible Note and Series Seed Funding for Startups
Before Series A - Convertible Note and Series Seed Funding for Startups ldef2001
 

Recommended

Convertible Debt - How it Works
Convertible Debt - How it WorksConvertible Debt - How it Works
Convertible Debt - How it Worksbhron
 
Convertible Debt Simplified
Convertible Debt SimplifiedConvertible Debt Simplified
Convertible Debt SimplifiedBen Littauer
 
Burkland Associates Convertible Note Presentation
Burkland Associates Convertible Note PresentationBurkland Associates Convertible Note Presentation
Burkland Associates Convertible Note Presentationjburkland
 
Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)
Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)
Pre-Series A Funding Vehicles ( Convertible Notes, SAFE, KISS, etc.)ideatoipo
 
Convertible Note Presentation
Convertible Note PresentationConvertible Note Presentation
Convertible Note PresentationNeil Milano
 
Deal Structures for Early Stage Financing
Deal Structures for Early Stage FinancingDeal Structures for Early Stage Financing
Deal Structures for Early Stage Financinglerchearly
 
Deciphering SAFE, Convertible Notes & Term Sheets
Deciphering SAFE, Convertible Notes & Term SheetsDeciphering SAFE, Convertible Notes & Term Sheets
Deciphering SAFE, Convertible Notes & Term SheetsTytus Cytowski
 
Before Series A - Convertible Note and Series Seed Funding for Startups
Before Series A - Convertible Note and Series Seed Funding for Startups Before Series A - Convertible Note and Series Seed Funding for Startups
Before Series A - Convertible Note and Series Seed Funding for Startups ldef2001
 
Term Sheets - Debt and Equity
Term Sheets - Debt and EquityTerm Sheets - Debt and Equity
Term Sheets - Debt and EquityNow Dentons
 
sources of finance
sources of financesources of finance
sources of financeIndiraReddy123
 
Sources of finance
Sources of financeSources of finance
Sources of financePankaj Malkani
 
Sources of finance and Role of Project Manager
Sources of finance and Role of Project ManagerSources of finance and Role of Project Manager
Sources of finance and Role of Project ManagerSagar Garg
 
Financing business
Financing businessFinancing business
Financing businessNorton Lazarus
 
Role of debts in financial leverage by Punit Harkut
Role of debts in financial leverage by Punit Harkut Role of debts in financial leverage by Punit Harkut
Role of debts in financial leverage by Punit HarkutPunit Harkut
 
Sources Of Finance
Sources Of FinanceSources Of Finance
Sources Of FinanceMarcus9000
 
Sources Of Finance
Sources Of FinanceSources Of Finance
Sources Of FinanceRahul Jain
 
Angel Bootcamp - Angel Investing: Terms and Issues - Dave Young
Angel Bootcamp - Angel Investing: Terms and Issues - Dave YoungAngel Bootcamp - Angel Investing: Terms and Issues - Dave Young
Angel Bootcamp - Angel Investing: Terms and Issues - Dave YoungLaunchpad LA
 
Non conventional financing ccf day 3
Non conventional financing ccf day 3Non conventional financing ccf day 3
Non conventional financing ccf day 3Adrian Drysdale
 
Sources of finance
Sources of financeSources of finance
Sources of financeShani Hartley
 
ITFT- Accounting & Finance
ITFT- Accounting & FinanceITFT- Accounting & Finance
ITFT- Accounting & Financemmonicagupta
 
Multifamily Financing Starter Kit
Multifamily Financing Starter KitMultifamily Financing Starter Kit
Multifamily Financing Starter KitJames Eng
 
Investing and the Financial System
Investing and the Financial SystemInvesting and the Financial System
Investing and the Financial SystemBrian Coil
 
Access to Capital Workshop
Access to Capital WorkshopAccess to Capital Workshop
Access to Capital WorkshopAnamaria Contreras
 
10 k corpbond
10 k corpbond10 k corpbond
10 k corpbondCompumatrix Inc.
 
Sources and types of finance in business formation in Zimbabwe
Sources and types of finance in business formation in ZimbabweSources and types of finance in business formation in Zimbabwe
Sources and types of finance in business formation in ZimbabweMike T Zhou
 
Sources of finance
Sources of finance Sources of finance
Sources of finance Jamiu Akangbe
 
Hedge Funds - The tale of two
Hedge Funds - The tale of twoHedge Funds - The tale of two
Hedge Funds - The tale of twoPraful Anchaliya
 
Sources of finance
Sources of financeSources of finance
Sources of financeSaurabh Rai
 
TCN on Air: Convertible Debt
TCN on Air: Convertible DebtTCN on Air: Convertible Debt
TCN on Air: Convertible DebtThe Capital Network
 
How to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital FundingHow to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital Fundingideatoipo
 

More Related Content

What's hot

Term Sheets - Debt and Equity
Term Sheets - Debt and EquityTerm Sheets - Debt and Equity
Term Sheets - Debt and EquityNow Dentons
 
Sources of finance and Role of Project Manager
Sources of finance and Role of Project ManagerSources of finance and Role of Project Manager
Sources of finance and Role of Project ManagerSagar Garg
 
Role of debts in financial leverage by Punit Harkut
Role of debts in financial leverage by Punit Harkut Role of debts in financial leverage by Punit Harkut
Role of debts in financial leverage by Punit HarkutPunit Harkut
 
Sources Of Finance
Sources Of FinanceSources Of Finance
Sources Of FinanceMarcus9000
 
Sources Of Finance
Sources Of FinanceSources Of Finance
Sources Of FinanceRahul Jain
 
Angel Bootcamp - Angel Investing: Terms and Issues - Dave Young
Angel Bootcamp - Angel Investing: Terms and Issues - Dave YoungAngel Bootcamp - Angel Investing: Terms and Issues - Dave Young
Angel Bootcamp - Angel Investing: Terms and Issues - Dave YoungLaunchpad LA
 
Non conventional financing ccf day 3
Non conventional financing ccf day 3Non conventional financing ccf day 3
Non conventional financing ccf day 3Adrian Drysdale
 
ITFT- Accounting & Finance
ITFT- Accounting & FinanceITFT- Accounting & Finance
ITFT- Accounting & Financemmonicagupta
 
Multifamily Financing Starter Kit
Multifamily Financing Starter KitMultifamily Financing Starter Kit
Multifamily Financing Starter KitJames Eng
 
Investing and the Financial System
Investing and the Financial SystemInvesting and the Financial System
Investing and the Financial SystemBrian Coil
 
Sources and types of finance in business formation in Zimbabwe
Sources and types of finance in business formation in ZimbabweSources and types of finance in business formation in Zimbabwe
Sources and types of finance in business formation in ZimbabweMike T Zhou
 
Hedge Funds - The tale of two
Hedge Funds - The tale of twoHedge Funds - The tale of two
Hedge Funds - The tale of twoPraful Anchaliya
 
Sources of finance
Sources of financeSources of finance
Sources of financeSaurabh Rai
 

What's hot (20)

Term Sheets - Debt and Equity
Term Sheets - Debt and EquityTerm Sheets - Debt and Equity
Term Sheets - Debt and Equity
 
sources of finance
sources of financesources of finance
sources of finance
 
Sources of finance
Sources of financeSources of finance
Sources of finance
 
Sources of finance and Role of Project Manager
Sources of finance and Role of Project ManagerSources of finance and Role of Project Manager
Sources of finance and Role of Project Manager
 
Financing business
Financing businessFinancing business
Financing business
 
Role of debts in financial leverage by Punit Harkut
Role of debts in financial leverage by Punit Harkut Role of debts in financial leverage by Punit Harkut
Role of debts in financial leverage by Punit Harkut
 
Sources Of Finance
Sources Of FinanceSources Of Finance
Sources Of Finance
 
Sources Of Finance
Sources Of FinanceSources Of Finance
Sources Of Finance
 
Angel Bootcamp - Angel Investing: Terms and Issues - Dave Young
Angel Bootcamp - Angel Investing: Terms and Issues - Dave YoungAngel Bootcamp - Angel Investing: Terms and Issues - Dave Young
Angel Bootcamp - Angel Investing: Terms and Issues - Dave Young
 
Non conventional financing ccf day 3
Non conventional financing ccf day 3Non conventional financing ccf day 3
Non conventional financing ccf day 3
 
Sources of finance
Sources of financeSources of finance
Sources of finance
 
ITFT- Accounting & Finance
ITFT- Accounting & FinanceITFT- Accounting & Finance
ITFT- Accounting & Finance
 
Multifamily Financing Starter Kit
Multifamily Financing Starter KitMultifamily Financing Starter Kit
Multifamily Financing Starter Kit
 
Investing and the Financial System
Investing and the Financial SystemInvesting and the Financial System
Investing and the Financial System
 
Access to Capital Workshop
Access to Capital WorkshopAccess to Capital Workshop
Access to Capital Workshop
 
10 k corpbond
10 k corpbond10 k corpbond
10 k corpbond
 
Sources and types of finance in business formation in Zimbabwe
Sources and types of finance in business formation in ZimbabweSources and types of finance in business formation in Zimbabwe
Sources and types of finance in business formation in Zimbabwe
 
Sources of finance
Sources of finance Sources of finance
Sources of finance
 
Hedge Funds - The tale of two
Hedge Funds - The tale of twoHedge Funds - The tale of two
Hedge Funds - The tale of two
 
Sources of finance
Sources of financeSources of finance
Sources of finance
 

Similar to Convertible Debt for Startups

How to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital FundingHow to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital Fundingideatoipo
 
How to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital FundingHow to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital Fundingideatoipo
 
10.2 seed financing.pptx
10.2 seed financing.pptx10.2 seed financing.pptx
10.2 seed financing.pptxRick Rasmussen
 
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009David Shore
 
Acg december program_distressed assets
Acg december program_distressed assetsAcg december program_distressed assets
Acg december program_distressed assetsMarcie Taylor
 
How Do Convertible Notes Work For Early-stage Financing
How Do Convertible Notes Work For Early-stage FinancingHow Do Convertible Notes Work For Early-stage Financing
How Do Convertible Notes Work For Early-stage FinancingEquidam
 
Keith White from Burkland Associates on Startup Fundraisings AngelLaunch 2014...
Keith White from Burkland Associates on Startup Fundraisings AngelLaunch 2014...Keith White from Burkland Associates on Startup Fundraisings AngelLaunch 2014...
Keith White from Burkland Associates on Startup Fundraisings AngelLaunch 2014...Keith White
 
Sources of finance.pptx(Finance for MBA)
Sources of finance.pptx(Finance for MBA)Sources of finance.pptx(Finance for MBA)
Sources of finance.pptx(Finance for MBA)personalu65
 
Debt and preffered stock finacing
Debt and preffered stock finacingDebt and preffered stock finacing
Debt and preffered stock finacingRupesh neupane
 
The Convertible Loan
The Convertible LoanThe Convertible Loan
The Convertible LoanBarry Schuman
 
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...Financial Poise
 
RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022_Opportunity Amidst Crisis...
RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022_Opportunity Amidst Crisis...RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022_Opportunity Amidst Crisis...
RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022_Opportunity Amidst Crisis...Financial Poise
 
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...Financial Poise
 
Self Storage Training Series Part 3
Self Storage Training Series Part 3 Self Storage Training Series Part 3
Self Storage Training Series Part 3 Scott Meyers
 
Sources of capital/ Cost of Capital
Sources of capital/ Cost of Capital Sources of capital/ Cost of Capital
Sources of capital/ Cost of Capital Joshua Obeng Boadi
 
Sources Of Long Term Finance
Sources Of Long Term FinanceSources Of Long Term Finance
Sources Of Long Term Financewizkidrx
 

Similar to Convertible Debt for Startups (20)

TCN on Air: Convertible Debt
TCN on Air: Convertible DebtTCN on Air: Convertible Debt
TCN on Air: Convertible Debt
 
How to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital FundingHow to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital Funding
 
How to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital FundingHow to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital Funding
 
10.2 seed financing.pptx
10.2 seed financing.pptx10.2 seed financing.pptx
10.2 seed financing.pptx
 
Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009Angel Investing to Island Tech 2009
Angel Investing to Island Tech 2009
 
Acg december program_distressed assets
Acg december program_distressed assetsAcg december program_distressed assets
Acg december program_distressed assets
 
How Do Convertible Notes Work For Early-stage Financing
How Do Convertible Notes Work For Early-stage FinancingHow Do Convertible Notes Work For Early-stage Financing
How Do Convertible Notes Work For Early-stage Financing
 
Keith White from Burkland Associates on Startup Fundraisings AngelLaunch 2014...
Keith White from Burkland Associates on Startup Fundraisings AngelLaunch 2014...Keith White from Burkland Associates on Startup Fundraisings AngelLaunch 2014...
Keith White from Burkland Associates on Startup Fundraisings AngelLaunch 2014...
 
Sources of finance.pptx(Finance for MBA)
Sources of finance.pptx(Finance for MBA)Sources of finance.pptx(Finance for MBA)
Sources of finance.pptx(Finance for MBA)
 
Debt and preffered stock finacing
Debt and preffered stock finacingDebt and preffered stock finacing
Debt and preffered stock finacing
 
The Convertible Loan
The Convertible LoanThe Convertible Loan
The Convertible Loan
 
Pcg.Financial Planning Ce Presentation
Pcg.Financial Planning Ce PresentationPcg.Financial Planning Ce Presentation
Pcg.Financial Planning Ce Presentation
 
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
 
RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022_Opportunity Amidst Crisis...
RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022_Opportunity Amidst Crisis...RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022_Opportunity Amidst Crisis...
RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022_Opportunity Amidst Crisis...
 
Trust Deed Investing
Trust Deed InvestingTrust Deed Investing
Trust Deed Investing
 
Laddered bonds pros_and_cons
Laddered bonds pros_and_consLaddered bonds pros_and_cons
Laddered bonds pros_and_cons
 
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
Opportunity Amidst Crisis - Buying Distressed Assets, Claims, and Securities ...
 
Self Storage Training Series Part 3
Self Storage Training Series Part 3 Self Storage Training Series Part 3
Self Storage Training Series Part 3
 
Sources of capital/ Cost of Capital
Sources of capital/ Cost of Capital Sources of capital/ Cost of Capital
Sources of capital/ Cost of Capital
 
Sources Of Long Term Finance
Sources Of Long Term FinanceSources Of Long Term Finance
Sources Of Long Term Finance
 

More from Ricklawboston

Jobs Act Presentation 10.11.12 C
Jobs Act Presentation 10.11.12 CJobs Act Presentation 10.11.12 C
Jobs Act Presentation 10.11.12 CRicklawboston
 
Bentley Presentation C
Bentley Presentation CBentley Presentation C
Bentley Presentation CRicklawboston
 
Series A: Negotiating Term Sheets
Series A: Negotiating Term SheetsSeries A: Negotiating Term Sheets
Series A: Negotiating Term SheetsRicklawboston
 
Travis Drouin MFA on Equity Compensation
Travis Drouin MFA on Equity CompensationTravis Drouin MFA on Equity Compensation
Travis Drouin MFA on Equity CompensationRicklawboston
 
Pearl Meyer on Equity Compensation
Pearl Meyer on Equity CompensationPearl Meyer on Equity Compensation
Pearl Meyer on Equity CompensationRicklawboston
 
Lucash on Equity Compensation
Lucash on Equity CompensationLucash on Equity Compensation
Lucash on Equity CompensationRicklawboston
 
BizSpark On Equity Comp
BizSpark On Equity CompBizSpark On Equity Comp
BizSpark On Equity CompRicklawboston
 

More from Ricklawboston (8)

Jobs Act Presentation 10.11.12 C
Jobs Act Presentation 10.11.12 CJobs Act Presentation 10.11.12 C
Jobs Act Presentation 10.11.12 C
 
Bentley Presentation C
Bentley Presentation CBentley Presentation C
Bentley Presentation C
 
Series A: Negotiating Term Sheets
Series A: Negotiating Term SheetsSeries A: Negotiating Term Sheets
Series A: Negotiating Term Sheets
 
Travis Drouin MFA on Equity Compensation
Travis Drouin MFA on Equity CompensationTravis Drouin MFA on Equity Compensation
Travis Drouin MFA on Equity Compensation
 
Pearl Meyer on Equity Compensation
Pearl Meyer on Equity CompensationPearl Meyer on Equity Compensation
Pearl Meyer on Equity Compensation
 
Lucash on Equity Compensation
Lucash on Equity CompensationLucash on Equity Compensation
Lucash on Equity Compensation
 
BizSpark On Equity Comp
BizSpark On Equity CompBizSpark On Equity Comp
BizSpark On Equity Comp
 
128icg Re Boards
128icg Re Boards128icg Re Boards
128icg Re Boards
 

Convertible Debt for Startups

  • 1. Convertible Debt Financing How it Works 11.2.11 Benjamin M. Hron [email_address] 617.449.6584 @HronEsq Rick M. Lucash [email_address] 617.449.6568 @RickLucash
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. McCarter & English LLP Benjamin M. Hron [email_address] 617.449.6584 @HronEsq Rick M. Lucash [email_address] 617.449.6568 @RickLucash Questions?