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0 pointsyokumtaku15y ago0 comments

Yes, it's the investor option to convert upon maturity into Series AA, not the company option to force conversion.

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sachinag15y ago· 1 in thread

OK, so in practice, what happens if the company can't raise a round? Do they just return what they can to the fund and close up the doors?

yokumtakuOP15y ago

The note stays outstanding. Generally speaking, there's no good reason for the investor to want to convert into equity, as debt is better in a bankruptcy situation.

Some companies might return money to investors before shutting down.

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