Convertible Loan

Convertible Note - 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.

Class Information

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Identification

Label (rdfs)
Convertible Note
Preferred Label
Convertible Loan
Alternative Labels
Convertible Debt
Identifier
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Definition and Examples

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.
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Additional Information

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Deprecated
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