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Showing posts from September, 2014

Convertible Note- Ease of Raising Funds By Startup

Today, we are in the golden age of startups, where people are ready to take risks for their dreams and passion. It takes more than just a great idea to run a successful business. Entrepreneurs and existing business owners need capital to pursue their dreams. New business ventures often have difficulty obtaining capital (whether for starting up, or for expanding operations). Today during economic downturns where standards for commercial investment are becoming water tight, a number of investors often seek non-traditional investment opportunities to enhance their portfolios. A convertible note (“Note”) provides such an opportunity to serve the needs of both the startup business needing capital and the investor seeking an opportunity. With the latest RBI Notification dated Nov.07, 2017, FDI is also permissible by means of Convertible Note ‘Convertible Note’ is an instrument issued by a startup company evidencing receipt of money initially as debt, which is repayable at the option of the ho…