They are debt instruments that give the chance to the holder to convert them in equity (typically shares of stock) of the company that is being funded. The equity portion, discount rate, term and interest rate will depend on the conditions established in the Note.

Seed is referred to the first stage in the development of a startup after the idea. It is important to realize this in order to identify the level of associate risk for an investor, this will allow to choose the best way to proceed. In most of the cases at this point there will be no… Read More Seed Stage and Seed Funding