Convertible Debt

Convertible debt, also known as a convertible bond, is a hybrid investment that starts as a bond but can be converted into shares of the company later.

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This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

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Venture Capitalist

A venture capitalist (VC) is an investor who provides private financing to a company in exchange for an equity stake (typically 15% to 45% of the company). VCs normally invest in startups or small companies that are seeking to expand, though some venture capitalists invest in more mature companies.

PaaS

PaaS, or Platform as a Service, gives developers and companies the ability to create, host, and deploy applications through the cloud. Both the hardware and the application software platform are provided as part of PaaS, hosted on the PaaS provider’s platform.

Pre-emption Rights

Rights that give existing shareholders the opportunity to purchase new shares issued by a company before they are offered to new shareholders, allowing them to maintain their ownership percentage.