Seedrs, a European platform where people can invest in seed-stage companies in exchange for equity, has launched its first ‘convertible note’ backing campaign today.
Essentially, a convertible investment round means that investors get a discount on future shares without requiring the company to get a formal valuation. It’s like an extra little reward for believing in a company from the start. And for the companies involved, convertibles often act as bridging finance between rounds.
So. Much. Tech.
Some of the biggest names in tech are coming to TNW Conference in Amsterdam this May.
“Convertibles are very popular among startups in Silicon Valley as a way to raise money now, while deferring the need to place a value on the company until some time in the future. This can be particularly useful when a startup is looking to raise large venture capital funding in the near future, but doesn’t want a valuation placed on their company now which may affect those negotiations,” a spokesperson said.
Future Ad Labs, which is looking to raise £400,000, will be the first company to run a convertible campaign but it’s now open to all comers.
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