Business Pitch Dictionary by pitch.dog
Valuation & conversion mechanics · Core

Conversion

Also called: security conversion

ELI5

An investment changes into shares or another security.

Used in conversation

“The SAFE conversion occurs at the equity financing.”

Definition

The process by which one security becomes another under its terms.

Here “Conversion” means: The process by which one security becomes another under its terms.

Pitch context

You will see “Conversion” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches valuation & conversion mechanics.

Why it matters: In valuation & conversion mechanics, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • ConversionThe same visible label “Conversion” names different concepts.
  • ConversionThe same visible label “Conversion” names different concepts.
Sources & evidence · 5

Direct term-level sources and supporting source families.