Convertible Note Purchase Agreement with Short-Form Note (Seed-Stage Startup) | Practical Law

Convertible Note Purchase Agreement with Short-Form Note (Seed-Stage Startup) | Practical Law

A purchase agreement for a private placement of convertible promissory notes to accredited investors in reliance on Rule 506 of Regulation D under the Securities Act or Section 4(a)(2) of the Securities Act. The agreement is intended for use by early-stage startup companies to raise seed capital from angel investors, friends, and family before receiving institutional venture capital financing. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.

Convertible Note Purchase Agreement with Short-Form Note (Seed-Stage Startup)

Practical Law Standard Document w-000-6699 (Approx. 42 pages)

Convertible Note Purchase Agreement with Short-Form Note (Seed-Stage Startup)

by Practical Law Corporate & Securities
Maintained • USA (National/Federal)
A purchase agreement for a private placement of convertible promissory notes to accredited investors in reliance on Rule 506 of Regulation D under the Securities Act or Section 4(a)(2) of the Securities Act. The agreement is intended for use by early-stage startup companies to raise seed capital from angel investors, friends, and family before receiving institutional venture capital financing. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.