What Founders Need To Know About Convertible Notes: Discounts, Caps And More

If you’re an early-stage founder looking to quickly and efficiently raise capital for your startup, the convertible note may be the perfect vehicle for getting your investment. A convertible note or convertible debt is a loan that can convert into equity when certain events occur. Until that point, a convertible note is simply a loan to the company that accumulates interest.

Convertible notes can be a great option because they:

Are simple and fast Are familiar to lawyers and investors Delay valuation until the next financing round

Getting funding through a convertible note is more straightforward and quicker than trying to raise

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