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Yes, it's the investor option to convert upon maturity into Series AA, not the company option to force conversion.
by yokumtaku 16y ago
Yes, it's the investor option to convert upon maturity into Series AA, not the company option to force conversion.
- sachinag 16y agoOK, 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?
- yokumtaku 16y agoThe 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.