Community FAQs

General FAQs to help you manage your profile, get to know Seedrs and learn key industry definitions.

Floor price

If a trigger event does not happen by the longstop date, a convertible converts to equity at an estabished floor price. A floor price acts like a default valuation in the event that there hasn’t been an external priced round or transaction. It is commonly set at the valuation of a company’s most recent investment round prior to the convertible.

The floor price is pre-agreed and outlined in the terms that are specified in the convertible instrument, and it is disclosed to investors in the convertible campaign.

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