This easy to follow guide helps startup founders understand the key moving parts of the convertible debt funding structure, and serves as an easy reference for the most common terms and calculations related to convertible debt.
In detail, this
Founder's Pocket Guide
helps startup founders learn:
What convertible debt is
and how it can be an important fundraising structure.
Key terms and definitions
associated with convertible debt, such as conversion triggers, valuation caps, and conversion discounts.
Key advantages and disadvantages
of using convertible debt as a funding structure.
How investors view the convertible debt
, and what their expectations are for early-stage investment deals.
Simple math
for calculating the impact of conversion discount rates and resulting equity ownership on conversion.
Example convertible debt deals
illustrating how convertible debt benefits both founders and investors alike.