By South Florida entrepreneurs, for South Florida entrepreneurs. All things tech in the sunny Silicon Tropic.
Wilson Sonsini Goodrich & Rosati, a prestigious law firm specializing in securities, IP, and everything for tech companies, posted a fill-in-the-blank document builder for a convertible note term sheet. This works well; I’ve used it as a starting point. Definitely have your counsel review, and don’t forget to consider putting in a floor, a cap valuation, etc.
New to this? For a small seed/pre-rev, I’d suggest an interest rate of 6.25%, 18-month maturity, 20% discount. But that really depends on your business and where you are.