Convertible Debt. Internationally recognized, aip won the best macro hedge fund in canada award in 2015 (acquisition international hedge. The investors lend money to the startup.
It carries more risk than unsubordinated debt. A company in its earliest stages may use convertible debt for fundraising purposes. Internationally recognized, aip won the best macro hedge fund in canada award in 2015 (acquisition international hedge.
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Usually somewhere between 4% and 8%. The convertible debt holders get this discount in part because they invested earlier in time. Convertible debt arrangements allow investors to loan a startup money with debt that converts into equity at a future date. Since many startups lack the funds to support cash interest payments, most convertible debt agreements allow the interest.
