Explaining convertible debt - WilmerHale Launch
Seed-stage investments are often structured as convertible loans. Investors loan money to the company. In exchange, the investors receive convertible promissory notes. When the company later sells preferred stock in its next financing,...

Financing Terms & Structures - WilmerHale Launch
Raising seed capital You generally have four different options for how to structure your seed financing: common stock, debt, convertible debt and preferred stock. For business, tax and other legal considerations, however, using...

Venture debt - WilmerHale Launch
Venture debt is a form of debt financing typically provided by certain lenders to venture-backed companies that lack the assets or cash flow for traditional bank debt financing. Venture debt is generally structured as a term...

Venture debt - WilmerHale Launch
Venture debt is a form of debt financing typically provided by certain lenders to venture-backed companies that lack the assets or cash flow for traditional bank debt financing. Venture debt is generally structured as a term loan...

Raising seed capital - WilmerHale Launch
You generally have four different options for how to structure your seed financing: common stock, debt, convertible debt and preferred stock. For business, tax and other legal considerations, however, using convertible debt or preferred...

Erika Robinson - WilmerHale Launch
Erika Robinson Partner Washington DC, New York T + 1 202 663 6402 F + 1 202 663 6363 Erika manages a wide range of capital markets transactions, including public and private equity and debt offerings (representing issuers and underwriters), tender and exchange offers, and other corporate restructurings....

What are the benefits of raising money through a convertible debt financing? - WilmerHale Launch
Your startup company is still in its infancy. In the first few months since founding the company you have built the beginnings of a great team, you have achieved a few important milestones in the development of your product and you...

Valuation caps on convertible notes - WilmerHale Launch
Whether a company should agree to a valuation cap in a convertible note will depend on its particular circumstances. From the company’s perspective, it is better to exclude a valuation cap, because it offers the investor down-side...

Jamie Class - WilmerHale Launch
Jamie Class Special Counsel Boston T + 1 617 526 6871 F + 1 617 526 5000 Helping a startup raise debt capital gives me an opportunity to learn about the startup’s business goals and operations. I enjoy collaborating with management and being able to deploy my skills to help the startup company obtain key...

How liquidation preferences work - WilmerHale Launch
The “liquidation preference” is the amount of proceeds from a sale or liquidation of the company that the preferred shareholders will receive before the common shareholders are entitled to receive anything. Standard 1x Non-Participating...