A line-by-line explanation of a convertible note term sheet to prepare new entrepreneurs to understand and negotiate convertible debt terms for this popular form of startup funding. Download the example term sheet at

http://www.startupsos.com/docs/note-t....

Topics covered in this video include:

Convertible Note Financing Amount
Convertible Note Closing
Convertible Note Definitive Agreement
Convertible Note Maturity Date
Convertible Note Interest
Convertible Note Automatic Conversion on Qualified Financing
Convertible Note Automatic Conversion on Maturity
Convertible Note Discount
Convertible Note Valuation Cap
Convertible Note Change in Control
Convertible Note Approval Rights
Convertible Note Board Observer Rights
Convertible Note Participation Rights
Convertible Note Most Favored Terms
Convertible Note Pre-Payment
Convertible Note Amendment and Waiver
Convertible Note Reports (Information Rights)
Convertible Note Confidentiality/No Shop
Convertible Note Legal Expenses