http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/ Venture capital, seed financings, convertible note bridge debt, M&A, option vesting and other matters explained for founders and entrepreneurs Sun, 07 Mar 2010 11:53:23 +0000 http://wordpress.org/?v=2.9 hourly 1 http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/comment-page-1/#comment-2974 Yokum Sun, 19 Jul 2009 10:53:01 +0000 http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/#comment-2974 @jonchan - Probably conversion into common stock at a pre-set price or valuation. Alternatively, it could be a pre-set percentage of the company. @jonchan – Probably conversion into common stock at a pre-set price or valuation. Alternatively, it could be a pre-set percentage of the company.

]]> http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/comment-page-1/#comment-2821 Yokum Sun, 19 Jul 2009 04:53:01 +0000 http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/#comment-2821 @jonchan - Probably conversion into common stock at a pre-set price or valuation. Alternatively, it could be a pre-set percentage of the company. @jonchan – Probably conversion into common stock at a pre-set price or valuation. Alternatively, it could be a pre-set percentage of the company.

]]> http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/comment-page-1/#comment-2811 jonchan Fri, 10 Jul 2009 05:54:37 +0000 http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/#comment-2811 What's the standard convertible note term addressing M&A events? Seems to me a fixed rate of return doesn't make sense because it doesn't account for the context of the M&A -- i.e., what if it's a firesale? The alternative isn't great either but perhaps makes more sense -- pre-negotiating a % ownership of the company at the time of sale. What's the standard convertible note term addressing M&A events? Seems to me a fixed rate of return doesn't make sense because it doesn't account for the context of the M&A — i.e., what if it's a firesale? The alternative isn't great either but perhaps makes more sense — pre-negotiating a % ownership of the company at the time of sale.

]]> http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/comment-page-1/#comment-165 Yokum Sat, 23 Jun 2007 02:22:44 +0000 http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/#comment-165 A 2x return plus 1x into equity is a very rich deal for investors. A 2x return plus 1x into equity is a very rich deal for investors.

]]> http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/comment-page-1/#comment-161 john DiLiddo Wed, 20 Jun 2007 19:40:44 +0000 http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/#comment-161 what if the convertible note holder want 2X their their loan plus the conversion of the origional amount to the current PPM stock price if the company is sold to a third party before the note matures. Is this reasonable or excessive? They then get the benefit of both debt holders and equity holders . what if the convertible note holder want 2X their their loan plus the conversion of the origional amount to the current PPM stock price if the company is sold to a third party before the note matures. Is this reasonable or excessive? They then get the benefit of both debt holders and equity holders .

]]> http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/comment-page-1/#comment-48 Venture Hacks — [Hack] Make your debt attractive to investors Tue, 15 May 2007 08:05:15 +0000 http://www.startupcompanylawyer.com/2007/05/01/what-happens-if-the-company-is-sold-after-the-convertible-bridge-note-is-issued-and-before-the-maturity-date-or-the-next-round-of-financing/#comment-48 [...] Don’t let the company pre-pay the debt. Your investors don’t want you to repay the debt just before you raise a Series A or sell the company. [...] [...] Don’t let the company pre-pay the debt. Your investors don’t want you to repay the debt just before you raise a Series A or sell the company. [...]

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