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Looking for quick answers? Unfortunately, in the world of startups, quick, definite answers rarely exist, but our resources and insights can be a quick reference point.
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Broadly speaking, there are three types of financing transactions available to companies:

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<a href="https://quicklaunch.thompsonhinestaging.contentpilot.net/resource-library/key-terms-in-equity-financings-institutional/">Equity</a>

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Typically, in these types of financings, preferred equity is issued to investors. Regular participants are venture capital funds, growth capital funds and some seed equity investors.

Debt financings involve entering into a term loan, a revolving line of credit or another credit facility with a bank, financial institution or state loan agency.

<a href="https://quicklaunch.thompsonhinestaging.contentpilot.net/resource-library/key-terms-in-equity-financings-institutional/">Convertible Securities</a>

Convertible securities take the form of convertible notes, SAFEs, KISSes or other alternative convertible instruments. These are securities that give the investor a right to convert into preferred equity.

When deciding to offer equity, debt or convertible securities, startups should pay particular attention to:

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Click on these links for more detailed information about equity, debt and convertible security financings.

For more information, please contact a member of our&nbsp;<a href="/team/">New Venture</a>s group.

Should You Issue Equity, Debt or Convertible Securities?