As an entrepreneur raising capital, you have many options on what type of round to pursue: equity, safe, or even convertible debt. Especially in the seed stage, convertible debt can be an appealing option. If you do decide to go that route — we’ll cover the pro’s and con’s of debt in a future post — use a model convertible debt term sheet, like this Techstars document to help ensure best practices and simplicity in your current and future rounds. More importantly, make sure you understand the terms in the agreement and have a good lawyer to work with throughout the funding process.
