Usage and Context
Startups often use convertible equity during their first big funding. It`s easier than selling shares right away. Investors give money now and may get company shares later, usually when more investors come in.
Frequently asked questions
What is convertible equity?
Convertible equity means investing money in a company. Later, this investment can turn into part ownership of the company.
What is the difference between a convertible note and a seed fund?
A convertible note is a loan that can turn into company shares. A seed fund is direct money given to help start a business. Both help a business grow, but they work differently.
What is the seed capital of an investment fund?
Seed capital is the first money used to start a business. It helps cover early expenses until the business can make money on its own.