How often do convertible debt provisions (discounts etc.) survive a Series A VC round?

Gil’s estimate of 10-15 percent of cases whereby convertible debt provisions, discounts and other similar terms is probably very well on point, with, as he notes, with outlier cases representing the times in which these provisions do not survive Series A. Wilmer Hale’s Venture Capital Report provides us with similar findings. It shows:

  1. 89% of convertible loan deals covered by the Report in 2015 had discounts
  2. 55% of convertible loan deals contained caps in 2015, nearly a 20% drop from the 74% that featured them the year before.
  3. 68% of the 2015 convert-at-maturity deals convert into preferred

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