Now that I reread that, you're totally wrong. Angels are individual investors. They can and often do participate in equity rounds. They often contribute the entire amount. You can have an angel-funded series A. VCs could also do a convertible. It's called venture debt and it's rare but it happens.
No company that I've ever heard of specifies in their Articles what amount forces a future round to be equity rather than debt. It's all up to the company and investors. If your lawyers told you all of that stuff, seek new representation.
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Now that I reread that, you're totally wrong. Angels are individual investors. They can and often do participate in equity rounds. They often contribute the entire amount. You can have an angel-funded series A. VCs could also do a convertible. It's called venture debt and it's rare but it happens.
No company that I've ever heard of specifies in their Articles what amount forces a future round to be equity rather than debt. It's all up to the company and investors. If your lawyers told you all of that stuff, seek new representation.