When a startup issues a convertible note, the investor provides funding in exchange for a promissory note, which outlines the terms of the investment. The note typically includes details …

In this guide, we’ll define convertible note, explain how convertible notes work for startups, and provide all of the information you need to decide whether this is a viable option for your business.

A convertible note refers to a short-term debt instrument that allows an investor to convert debt to an equity stake in a company. Convertible notes are typically issued by newly opened …

Learn everything about convertible notes (aka convertible debt) including key parameters such as discount rates, valuation caps, as well as advantages, disadvantages, how they compare to …

Jul 2, 2024 · In this guide, we explain what convertible notes are, how they work, their advantages and disadvantages, and some legal and tax considerations.

Apr 1, 2025 · What Is a Convertible Note? A convertible note is a form of short-term debt financing used by early-stage startups that automatically converts into equity when certain …

Aug 28, 2024 · A convertible note is a short-term debt instrument or agreement that converts from debt to equity at a future date, usually when one of three key events occurs: The company …

Jun 6, 2024 · A convertible note is a short-term financial document that allows a business to receive cash in exchange for equity in a company. This agreement is utilized by startups to …

Convertible notes are bonds issued by corporations that are convertible to company stock, depending on the circumstances. Learn more about when buyers may want to convert notes …

Dec 5, 2025 · What Is a Convertible Note? The Simple Explanation. A convertible note is a loan that converts into equity. Instead of giving investors shares immediately, you’re borrowing …