Raising money can be difficult
Raising much-needed funding is a complex task, particularly if you are seeking an early-round or ‘bridge financing’ between larger rounds. As a founder, you may be deterred by (or simply not ready for) a traditional equity agreement, and be seeking a simpler and quicker way to get your company funds. You may consider a convertible note, which you can think of as a combination of debt and equity. In this sense, an investor loans a sum, and in the long run either your company will have to repay the loan, or certain events will occur and trigger the conversion of that loan into shares for the investor.
Debt carries a lot of financial risk
Convertible notes can be extremely difficult to navigate. They do carry several benefits, in that you delay the issuing of shares and coming up with your company’s valuation. It is absolutely crucial, however, that you understand the risks of pursuing this path and protect yourself as much as possible. Without clear-cut terms outlining the interest, conversion events, conversion price, valuation cap and default events, you leave yourself unaware of your obligations, your business targets, and the financial risk. You do not want to have any lengthy and costly disputes with your investor.
We assess your circumstances and make recommendations
UX Law are experts in all ways companies can attain finance. We can provide you with strategic legal guidance, creating and tailoring a convertible note to achieve your financing needs. Every company and investor is different, so we’ll assess your circumstances, then draft and negotiate the key terms for you.
Frequently asked questions
Can I do this myself?
Are your documents automatically generated?
Is the price a fixed-fee?
Can I speak or meet with a lawyer, and will this cost extra?
What if I need this urgently?
This package doesn’t suit me, can I create my own one?
What if the document or advice I need isn’t on the website?
- Free consultation
- Done for you tailored legal documents to suit your needs
- Initial drafting and review + one round of amendments
- Practical legal advice
- Fast turnaround times (5-7 days)
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