A Convertible Note is a simple promissory note, usually bearing interest and payable at some future date. The conversion into equity is usually at a valuation that is consistent with the valuation agreed to with investors in an investment round that occurs at a later time.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés.
For your convenience, the complete English version of this form is attached below the Spanish version.
Absolutely! Just like haggling at a garage sale, negotiating terms is part of the game. Make sure you’re clear about what you want and don’t hesitate to speak up.
Most convertible notes have a term of about 12 to 24 months. It's like a short sprint with the chance to stretch it out if the company needs more time.
If the startup doesn’t make it, the convertible note is considered a debt. This means the investors may not see a return, and they might not be able to convert their notes into equity.
Not really! The interest on a convertible note is typically added to the amount that converts to equity, so it can actually work in your favor when you turn your investment into shares.
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