There are 3 situations where SeedFASTs don’t convert at the next funding round, 1) in an exit event (sale or IPO), 2) when the longstop (contract time limit) is reached and 3) if the company dissolves. 

In all of these cases the SeedFAST will convert into equity before the event occurs. At an exit event, the SeedFAST will convert like it would at a funding round, the lowest of either the valuation cap or the Exit valuation minus the discount. If it converts at the longstop date or the company dissolves then the low valuation cap (pre-determined or the previous funding round share price) will be used.

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