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How Can Convertible Notes Help a Startup Raise Capital By : Raad Ahmed April 2015

How Can Convertible Notes Help a Startup Raise Capital

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How Can Convertible Notes Help a Startup Raise CapitalBy : Raad Ahmed

April 2015

FUNDRAISING ON STEROIDS…USING CONVERTIBLE NOTE

BROUGHT TO YOU BY

LAWTRADES

HERE IS A FACT…

FUNDRAISING IS DIFFICULT…TIME-CONSUMING…EXHAUSTING…SCARY…EXPENSIVE…...

YOU’RE ALONE AGAINST SO MANY INVESTORS…

…BUT WHAT YOU WANT IS TO GET THE

CHECK AND START GROWING YOUR STARTUP

THERE ARE 2 WAYS TO FUNDRAISE

OPTION A: EQUITY ROUNDEquity is issued to an investor in exchange for his capital

OPTION B: CONVERTIBLE NOTEEffectively a loan that converts to equity, given to the company by an investor

WHICH SHOULD I CHOOSE…?

IF IT’S A SEED ROUND…

IF IT’S A SEED ROUND…

IT’S THE CONVERTIBLE NOTE!

WHY?

BECAUSE IT’S EASIER AND FASTER TO USE A NOTE

WHY?

NO VALUATION NECCESSARYYou get the check, investor get’s better valuation during the next round

SMALL LEGAL FEES$2,000 or less, as opposed to up to $30,000 for equity round

Comes from much less complicated paperwork

NO SHARE-HOLDER’S RIGHTSNo Board Seat, No veto-power, No “Protective Provision”

=You keep full control of your startup

DIFFERENTIATED PRICINGNo matter how many investors, you can negotiate different terms

with each of the interested parties

AND IT ALL HELPS GET THAT CHECK FAST

Address / city / State / zip code

your name

from

amount

purpose

date

memo number 0152 - 635486565 - 4526589

HOW CAN I DO THAT?

1. FIND AN INVESTOR

2. VISIT

and hire interested, available lawyers at a price that works for you!

LAWTRADES.COM

LAWTRADES