Qualified Financing

Definizione

A qualified financing is the priced round, defined by a minimum size in a SAFE or note, that triggers automatic conversion of the instrument into equity.

Come si presenta nel fundraising

Notes and SAFEs specify thresholds (for example, a $1M+ equity round) so small raises do not accidentally force conversion.

Domande frequenti

What happens if a round is below the threshold?

Instruments typically do not auto-convert; holders may convert voluntarily or wait, per the document’s terms.

Why does the definition matter?

It controls when your SAFEs crystallize into cap table ownership; founders should know their stack’s trigger before planning a small priced round.

Metti in pratica questo termine

Le definizioni vincono le negoziazioni solo quando ci sei dentro. Trova gli investitori che finanziano il tuo stadio e avvia la conversazione.

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