Raising Capital With Convertible Notes

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February 2, 2011
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NEWS  THIS WEEK'S TOP STORY Raising Capital With Convertible Notes "Converts," which look like debt and taste like equity, are becoming popular among certain types of entrepreneurs and angel investors

Inside: This Week in SmallBiz Convertible notes are typically used for companies that need quick cash, are hard to value early on, or require a small round of financing. Over the past few years these so-called converts--loans that can turn into stock--have gained in popularity. Take a look at why this may be, and learn how they work. Also on tap: Check out a special report on a new breed of online worker that's paid by the project or task. Get the latest on the Startup America Partnership, the White House's new private sector campaign to encourage high potential ventures. Finally, hear one advocate's take on why "swipe" fees should be regulated. Enjoy. --Nick Leiber SEND FEEDBACK  |  E-MAIL A FRIEND  |  GET RSS  |  NEWSLETTERS

MORE SMALLBIZ NEWS AOL’s Case to Lead White House Entrepreneurs’ Effort AOL co-founder Steve Case will lead a White House campaign seeking to increase private-sector investments in startup companies and small businesses CEO GUIDE TO THE MICRO WORKFORCE Meet the Microworkers A new breed of online worker is paid by the task CEO GUIDE TO THE MICRO WORKFORCE Mechanical Serfdom Is Just That I spent a day crowdsourcing for Amazon's Mechanical Turk and all I have to show for eight hours in an online work marketplace is a measly $4.38 SMART ANSWERS Take a 'Proven' New Technology to Market Experts evaluate the benefits and drawbacks of an acquisition or merger, licensing the product, or selling it to customers independently HARD CHOICES Hard Choices: Evergreen Solar's China Move CEO Michael El-Hillow on why he closed his U.S. plant, fired 800 workers, and is moving his company to China   SMALLBIZ SLIDE SHOWS Most and Least Profitable Business Types Using the 2010 profit margins of thousands of private companies in 97 industries, we ranked the winners and losers America's Most Promising Startups Meet new companies from across the country that embody the creativity and resilience common among today's entrepreneurs   SMALLBIZ SPECIAL REPORTS ENTERPRISE Focus On Entrepreneurs, January 2011 From Bloomberg Businessweek, a roundup of news, trends, and ideas for business owners SMALLBIZ  BUSINESS DIRECTORY Need Help? Find experts in your area in: Accounting Advertising and Marketing E-Mail Marketing Legal Services Public Relations Search Engine Marketing Web Design Web Marketing Web Hosting  BW MALL  SPONSORED LINKS Buy a link now! This newsletter is a FREE service provided by BusinessWeek.com. To sign up for other newsletters, cancel delivery, change delivery options or change your e-mail address, please go to our Newsletter Preferences page. If you need other assistance, please contact Customer Service or contact: Wanda Cooper BusinessWeek Customer Rights Communications Data Services 1995 G Avenue Red Oak, IA 51566 Phone: 1-800-635-1200 To learn more about how BusinessWeek.com applies this policy, you can contact our Marketing Department. Copyright 2009-2010 by BLOOMBERG L.P. ALL RIGHTS RESERVED. Terms of Use | Privacy Notice

SMART ANSWERS KAREN E. KLEIN >> Establish a Commonsense Social Media Policy As employee communication on social networks increases, employers should put together guidelines to avoid litigation hot spots SEND YOUR QUESTIONS TO KAREN >   VIEWPOINT LARRY NANNIS >> In Broken Market, 'Swipe' Fees Must Be Regulated Small merchants pay too much to process credit- and debit-card transactions. The Fed's proposed rules will be far more fair—unless big banks and card issuers block them View all articles for Larry Nannis   Advertisement Today's Tip Leadership In most cases, the fear of financial loss creates bursts of frantic activity followed by periods of frustration and discouragement. --Michael H. Felberbaum, Founder, NumeSpot READ MORE > Advertisement