The following form* is a convertible note to be used in connection with the seed-stage financing of a startup company. Startups use seed-stage financing to raise operational capital for a period of 12-24 months in which they attempt to build their product and test the market for that product. This form includes practical guidance, drafting notes, alternate clauses, and optional clauses.
*This excerpt from Lexis Practice Advisor, a comprehensive practical guidance resource providing insight from lending practitioners, is reproduced with the permission of LexisNexis. Reproduction of this material, in any form, is specifically prohibited without written consent from LexisNexis.