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Convertible Note Lawyers


Convertible Note Lawyers


FUNDRAISING

Getting funded.

A Convertible Note allows you to raise money without hassle from investors using valuation caps and discounts.
Make sure it's done right 

Confirm your legal compliance
Have an equity attorney to turn to 

Avg price range

Costs largely depend on the complexity of the project, location, and other details. Speak with our experienced project managers to get an exact price based on your unique project requirements. 
 
*Estimates shown
  • CONVERTIBLE NOTE

$400 - $1,300 avg.

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Convertible notes and funding

A convertible note is a debt instrument that companies utilize to raise initial or “seed” funding. It is a popular way for investors to invest in a business that is in its formative stages. A convertible note is structured similar to a loan, the only difference being that it converts into equity after the business becomes more established either by acquiring more funding or reaching a particular milestone.

Convertible notes were pioneered to allow founders to get a quick loan from private investors in exchange for promising to repay those investors with stock at a later time when the price could be determined - normally, after a Series A funding round. Convertible notes have been touted as a “best of both worlds” deal; both a startup's perspective as well as from the investor’s perspective. They not only protect investors but also the businesses as well by allowing them to be valued more than their present value. One thing is for certain though; convertible notes are complex and should be drafted with the guidance of an experienced convertible note financing lawyer. 

The benefits

Confirm best form of funding 

There are other options for companies - such as equity financing - and a convertible note lawyer can assess if a convertible note or equity raise is right for your business better.

Having a convertible note lawyer to turn to 

With things like fundraising, it’s convenient and efficient to use the same convertible note lawyer throughout. It’s smart to introduce a convertible note lawyer to the process at an early stage such as the issuance of a convertible note and we’re sure you like the expert lawyers for business startups at LawTrades. 

Learn about useful terms

An experienced lawyer for business startups has assisted with this process already and can suggest terms that have worked in the past. 

Convertible notes and funding

A convertible note is a debt instrument that companies utilize to raise initial or “seed” funding. It is a popular way for investors to invest in a business that is in its formative stages. A convertible note is structured similar to a loan, the only difference being that it converts into equity after the business becomes more established either by acquiring more funding or reaching a particular milestone.

Convertible notes were pioneered to allow founders to get a quick loan from private investors in exchange for promising to repay those investors with stock at a later time when the price could be determined - normally, after a Series A funding round. Convertible notes have been touted as a “best of both worlds” deal; both a startup's perspective as well as from the investor’s perspective. They not only protect investors but also the businesses as well by allowing them to be valued more than their present value. One thing is for certain though; convertible notes are complex and should be drafted with the guidance of an experienced convertible note financing lawyer. 

The benefits

Confirm best form of funding 

There are other options for companies - such as equity financing - and a convertible note lawyer can assess if a convertible note or equity raise is right for your business better.

Having a convertible note lawyer to turn to 

With things like fundraising, it’s convenient and efficient to use the same convertible note lawyer throughout. It’s smart to introduce a convertible note lawyer to the process at an early stage such as the issuance of a convertible note and we’re sure you like the expert lawyers for business startups at LawTrades. 

Learn about useful terms

An experienced lawyer for business startups has assisted with this process already and can suggest terms that have worked in the past. 

Sign-Up


By clicking continue, you are agreeing
to our
Privacy & Terms.

How it works

Evaluate.

Our legal team evaluates your business needs and designs a custom solution for your legal strategy.

Deploy.

We deploy the right legal talent to the right projects– both aligned with your company's culture and priorities.

Integrate.

We onboard your lawyers and they start contributing, supported by our senior legal staff.

Iterate.

Expand and contract work based on the fluctuating needs of your business.

How it works

Evaluate.

Our legal team evaluates your business needs and designs a custom solution for your legal strategy.

Deploy.

We deploy the right legal talent to the right projects– both aligned with your company's culture and priorities.

Integrate.

We onboard your lawyers and they start contributing, supported by our senior legal staff.

Iterate.

Expand and contract work based on the fluctuating needs of your business.

Reviews

Ester, W.

⭐⭐⭐⭐⭐
Very helpful in connecting me to the right lawyer with the right expertise. Highly recommended!

Chris M.

⭐⭐⭐⭐⭐
Working with my lawyer assign Jon H. was very easy and seamless. He was quick, attentive and answered my questions and concerns in a timely manner. Definitely recommend you and his services.

Hassan A.

⭐⭐⭐⭐⭐
It was so easy to manage through the text interaction when I got started. It was easy, fast and painless. I am very impressed

Jill J.

⭐⭐⭐⭐⭐
Great experience all around, LawTrades was just so much more personal and much better than other startup/online on-demand solutions for legal work,. Almost feels like I handpicked and hired the attorney myself. The Attorney was available to answer questions by phone or text message, so was the LawTrades rep who set the whole thing up. And when setting up new entities you always have questions, so this was a big deal for me.

Ori A.

⭐⭐⭐⭐⭐
Great experience all around, LawTrades was just so much more personal and much better than other startup/online on-demand solutions for legal work,. Almost feels like I handpicked and hired the attorney myself. The Attorney was available to answer questions by phone or text message, so was the LawTrades rep who set the whole thing up. And when setting up new entities you always have questions, so this was a big deal for me. The Attorney assigned to my project was available on demand to help out explain things every step of the way and I think the guys at LawTrades have done a great job with making you feel extremely comfortable. After all was done I even got an email and a call from one of the co founders of the company to make sure I had a seamless experience. I never got a call from other companies I had used in the past like Legal zoom and the whole thing always felt so automated. Yes, granted Legal zoom probably have way more clients than Lawtrades and as such would not be feasible for their management to call everyone, however, that was a nice touch which I do appreciate. I will definitely be heading back to Lawtrades whenever I require legal assistance.

Kris G.

⭐⭐⭐⭐⭐
Ease of use, professionalism of staff, and the exceptionally fast service. My LLC was formed overnight! Outstanding. I highly recommend LawTrades and Bradley Rothschild, Esq.

Janet S.

⭐⭐⭐⭐⭐
Quick and easy, I used LawTrades and worked with attorney Jonathan Hood to review a NDA. I got my questions answered right away. Arman was a great help making the connection. Would highly recommend the service.

Abrar K.

⭐⭐⭐⭐⭐
We had Ryan for our parent attorney he was wonderful! Fast and efficient! Arman was also very helpful anytime we had a question we could call at anytime.

What people
are saying

(100+ Positive Reviews)

⭐⭐⭐⭐⭐

Reviews

Karen, K.

⭐⭐⭐⭐⭐
My attorney, Roy Gross is highly responsive and very thorough.

Heinrich, T.

⭐⭐⭐⭐⭐
Exceptionally good service.

Bruce C.

⭐⭐⭐⭐⭐
Fast, seamless, elegant platform; a world-class attorney handled our case quickly, perfectly and affordably. Thanks Lawtrades!

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Frequently asked
questions

What’s the difference between a convertible note and an ordinary loan?
What distinguishes a convertible debt note from an ordinary loan are two key characteristics: (1) the discount, and (2) valuation cap. The discount is a feature that rewards early investors for taking larger risks than later investors. It does this by offering them the right to obtain shares at a cheaper price than that paid by Series A investors, once that round closes. The conversion cap similarly rewards early investors for their disproportionate risk, but in a different way than the discount. The cap sets the maximum value of a company when Series A closes, again giving an advantage to earlier investors.
Who are the types of investors interested in convertible notes?
Common investors include friends and family, angel investors, venture capitalists (VCs), crowdfunding websites, peer-to-peer lenders, and institutional lenders.
What happens to convertible notes if a company is acquired before the notes mature or are converted in an equity financing round?
The most common scenarios are: (1) the note gets repaid at a premium (principal + interest + premium); (2) the note gets repaid as an ordinary loan (principal + interest); or (3) the note converts according to its terms. A convertible note lawyer can provide keen insight regarding which structure is most advantageous for your particular situation.
What are some material terms and parameters to include in a convertible note?
It’s common for the following terms to be included in a convertible note: 1) class of security (what the note will convert into); 2) conversion triggers; 3) the interest rate on the note; 4) whether the note will be secured; 5) warrants (gives the holder the right to purchase a company’s stock in the future at a per share price that is typically set at the time the warrant is issued); 6) valuation cap; 7) discount rate; and 8) the next equity financing.
What is the Qualified Round?
A Qualified Round is an equity deal that triggers conversion of the convertible note. There is usually a minimum amount of proceeds that need to be raised in the next round of financing in order for the investor's note to be eligible for conversion.
What does a “Most Favored Nation” clause in a convertible note mean?
A Qualified Round is an equity deal that triggers conversion of the convertible note. There is usually a minimum amount of proceeds that need to be raised in the next round of financing in order for the investor's note to be eligible for conversion.
Arman Habib Account Executive at LawTrades

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