Automatic Conversion is a provision in a convertible note or security that specifies the conditions under which the instrument will automatically convert into equity, typically at a predetermined trigger event like a future financing round.

Conversion happens when a startup gets more funding, turning loans or investments into ownership without needing further approval.

Does convertible note automatically convert? Yes, if certain conditions are met, convertible notes can automatically turn into company ownership.

What are the 4 types of B2B? The four types of B2B are manufacturers selling to distributors, wholesalers selling to retailers, service providers selling to businesses, and software as a service (SaaS) companies selling to enterprises.

What is B2B marketing called? B2B marketing is commonly referred to as business-to-business marketing, where companies sell products or services directly to other businesses instead of individual consumers.

Capshare, Carta, Gust Equity Management, Eqvista, etc., are software used to manage automatic conversion provisions in convertible notes or securities for startups and businesses.

Automatic Conversion helps startups easily switch from borrowing money to owning part of the company when certain conditions are met, making it easier to raise funds.

In summary, Automatic Conversion simplifies the process for startups to switch from debt to ownership when specific conditions are met, easing fundraising efforts.