WSGR Launches Convertible Note Term Sheet Generator
In the technology start-up context, convertible note financings typically are designed to raise funds sufficient to meet a company's short-term financial needs until it can complete a more formal round of equity financing, or to bridge the company to some other significant event. Its name derives from the fact that these financings usually involve the issuance of notes that are convertible into the securities issued in the next major equity financing by the company. Because start-ups may not have the cash flow to repay the notes, it is often intended that the notes will be converted into equity instead of being repaid. Many early-stage companies, in particular, will try to raise seed money this way because a convertible note financing typically can be completed more quickly than a more formal equity investment by venture funds.
To help companies contemplating this type of financing, Wilson Sonsini Goodrich & Rosati is pleased to announce the launch of a free online Convertible Note Term Sheet Generator. A modified version of a tool that the firm uses internally, it allows users to automatically generate a term sheet for a convertible note financing by completing an online questionnaire with the assistance of basic tutorials and annotations.
The Convertible Note Term Sheet Generator is part of a suite of automation tools that the firm uses to generate start-up and venture financing-related documents. In addition to the new convertible note tool, we offer a public version of a term sheet generator for equity venture financings. We also have other free online resources for entrepreneurs, including our Entrepreneurs Reports and an online version of Entrepreneurs College.
To learn more about the firm's continuing emphasis on providing high-quality and cost-effective legal services to our clients and supporting the start-up community in general, please visit the Entrepreneurial Services section of wsgr.com.