UK-based crowdfunding platform Seedrs has launched “convertibles” as a new type of investment.
Otfen used in Silicon Valley and among venture capitalists, convertibles allow startups to raise a smaller funding round in the meantime when there is a perspective larger round. Through a convertible, they offer a discount to investors and defer the time to put a valuation on the company when the round will take place.
Convertible investors will receive more shares than new backers at the time of the new funding.
The first convertible campaign on the platform is London, UK-based Future Ad Labs.
FinSMEs
07/07/2014