You pounded the pavement, raised capital, and spent the last few months using it to get your business up and running. In six months, your convertible debt will mature and you’re wondering where to go next. Ultimately, there are two options. You will either take steps to convert the notes into preferred equity, or you will carry the convertible debt. There are multiple paths you can take that will lead you to these outcomes. If you can raise a qualified financing round or if the company about to be acquired, you’ll likely convert to preferred equity. If you need more time, more money, or you’ve decided that hockey-stick growth isn’t part of your business strategy, you’ll carry the convertible debt. Below, we summarized a recent article we published with SaaStr in a quick infographic. Check out the full article, Almost Everything You Need to Know When Your Convertible Notes Approach Maturity, for more information and a deeper explanation of what you see below.
If you find yourself in a situation where you can use some bridge capital beyond your convertible note or you just want to talk early stage finance, book time with one of our lending specialists. They’ll help you understand your financing options and talk through the solution that works for your business.