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STRUCTURING CONVERTIBLE DEBT: KEY TRIGGERS, VALUATION TERMS

August 12, 2020 | (1:00pm-2:30pm)
USA (United States of America)
SHARESHARESHARE
This CLE webinar will provide corporate finance counsel with guidance on structuring convertible notes for seed-stage financing. The panel will discuss upfront due diligence, term sheet negotiation, and critical terms, including the discount rate, valuation cap, and triggers for the conversion from debt to equity. Convertible note financing is the most common form of seed-round funding for startup companies, in part because it does not force the issuer and investors to determine the value of the company at the time of the transaction. Conversion terms govern when the note converts to equity and how much will be paid to the noteholder upon conversion.