{"iri":"https://folio.openlegalstandard.org/RCUPRwxWXJ35yaRIp8mP8Sh","label":"Convertible Note","sub_class_of":["https://folio.openlegalstandard.org/R7xqVevh0JKSwX977TRIZQV","https://folio.openlegalstandard.org/R8x0u39yCNHqlqk08vu3PPb","https://folio.openlegalstandard.org/RCAIUgUHLdwFdtdPTruyEgL"],"parent_class_of":[],"is_defined_by":null,"see_also":[],"comment":null,"deprecated":false,"preferred_label":"Convertible Loan","alternative_labels":["Convertible Debt"],"translations":{},"hidden_label":null,"definition":"A Convertible Note is a form of short-term debt that converts into equity, usually in conjunction with a future financing round. The investor lends money to a startup and instead of getting the money back with interest, the investor receives equity in the company. Each convertible note is usually an unsecured, short-term debt instrument that converts into equity — typically preferred shares — under specified conditions, such as a future funding round. The conversion to equity can be mandatory in some conditions or elective in others.","examples":[],"notes":[],"history_note":null,"editorial_note":null,"in_scheme":null,"identifier":null,"description":null,"source":null,"country":null}