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

Conversion price

Also called: conversion share price

ELI5

The share price used for conversion.

Used in conversation

“The conversion price is determined by the cap, not the discount.”

Definition

The price per share used when a convertible security turns into equity.

Here “Conversion price” means: The price per share used when a convertible security turns into equity.

Pitch context

You will see “Conversion price” 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.

Sources & evidence · 5

Direct term-level sources and supporting source families.