# Step-up on conversion

The premium at which [search capital](https://searchspheresource.com/glossary/search-capital) turns into equity once a deal closes.

It is the price of the two years somebody paid for while you looked, and it is set before you have found anything. A raise of units at a stated step-up turns each dollar of search money into more than a dollar of deal equity, and the difference comes out of the [searcher](https://searchspheresource.com/glossary/searcher)'s own stake at closing. The number is negotiable and rarely negotiated, because a first-time searcher raising from strangers has little to trade. Ask what the step-up is in the same breath as the raise size: two funds of the same headline amount can leave a searcher holding very different fractions of the same company.

In numbers: A $25,000 unit bought during the search converts at a 150% step-up into $37,500 of deal equity at closing.

Source: https://searchspheresource.com/glossary/step-up-on-conversion
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt