Oct 28,2020 | 8 min read

"Convertible Note – Ease Of Raising Funds By Startups" By Aashish Srivastava

Today, we are in the golden age of start-ups, where people are excited to take a risk for their dreams and passions. To run a successful company needs more than just a brilliant idea. For the pursuit of their dreams, entrepreneurs and current business owners need money. New business projects (whether for start-up or expansion of operations) often have trouble raising money. Today, several investors also pursue non-traditional investment opportunities to boost their portfolios during economic downturns, where expectations for commercial investment are becoming watertight. A convertible note ("Note") offers an opportunity to serve the needs of both the capital-needing start-up company and the opportunity-seeking investor. As informed by notification from the Ministry of Corporate Affairs dated June 29, 2016, the idea of convertible notes was implemented by amending the meaning of 'deposits' under the Companies (Acceptance of Deposits) Law, 2014.

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ABOUT THE AUTHOR


Aashish Srivastava

Aashish regularly advises clients on Private Equity, Funds& Investment Transactions, Technology, E-Commerce, Fintech, Banking & Financial Services, Corporate & Commercial Advisory, Taxation, Risk & Compliance. He regularly advises Indian & international investors and startups on their business in India. Aashish is a mentor to a number of start-ups, social entrepreneurs as well as non-profit organisations in India. He currently serves on a number of advisory boards in an honorary capacity.

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