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Convertible Debt vs. Priced Equity Rounds: Evaluating the Preferred Deal Structure for Early Stage Financing

Pros and Cons of Different Financing Options for Entrepreneurs and Investors

A live 90-minute premium CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Tuesday, June 3, 2025

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, May 16, 2025

or call 1-800-926-7926

This CLE course will discuss the pros and cons of convertible notes, SAFEs, and priced equity rounds, and how to evaluate the optimal deal structure for startup investment financing rounds. The program will present perspectives from both issuers/owners and investors, as well as look at the current terms and trends for financing early-stage companies.

Description

Convertible note financings and similar transactions, including agreements for future equity called SAFEs, are a popular alternative for startup investment financing due to the difficulty of obtaining a meaningful valuation determination and apparently less onerous documentation, sometimes making it a less costly option.

Despite the popularity of convertible note and SAFE financings, early-stage investors frequently require priced equity rounds. Indeed, many investors prefer a priced equity round because it provides the investor with greater certainty regarding valuation and greater rights, privileges, and protections than convertible notes or SAFEs.

Counsel representing emerging growth companies and their investors must carefully consider each financing mechanism’s pros and cons to evaluate the preferred structure for the particular deal.

Listen as our authoritative panel of finance and securities attorneys reviews the pros and cons of convertible note/SAFE and priced equity rounds for startup investment financing. The panel will discuss current terms and trends for financing early-stage companies and look at the issues from both entrepreneurs' and investors' perspectives.

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Outline

  1. Current market terms and trends
  2. Convertibles: key terms
  3. Priced equity rounds: key terms
  4. Pros and cons of each deal structure

Benefits

The panel will review these and other highly relevant issues:

  • Current terms and trends for financing early-stage companies
  • How to determine the preferred deal structure: convertible debt or priced equity rounds
  • Comparing and contrasting convertible notes vs. equity rounds

Faculty

Gubins, Tamar
Tamar R. Gubins

Partner
Fox Rothschild

Ms. Gubins is a business-oriented attorney with extensive experience throughout the lifecycle of a technology company,...  |  Read More

Kerwin, Terrence
Terrence M. (Terry) Kerwin

Partner
Fox Rothschild

Mr. Kerwin is a partner in the firm's Corporate Department. He is also a member of the firm’s Emerging...  |  Read More

Attend on June 3

Early Discount (through 05/16/25)

Cannot Attend June 3?

Early Discount (through 05/16/25)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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