News & Events

Changes in Convertible Instruments for Early Stage Financings

By Procopio Partner Roger Rappoport and Senior Associate Aaron Sokoloff There are currently two main types of convertible instruments that are in widespread use for pre-Series A and other “bridge” financings: convertible promissory notes and SAFEs (Simple Agreements for Future Equity). Each of which are alike in that the amounts invested under the applicable instrument convert into shares of the issuing company in question, upon the happening of certain events, which is most often a s...