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.
When examining a Convertible Note Agreement, look out for interest rates, conversion terms, and any special provisions. It’s all about understanding the fine print before signing on the dotted line!
Yes, the terms can be adjusted if both parties agree. It’s like renegotiating between friends – communication is key to finding a solution that works for everyone.
Investing with Convertible Notes can be a bit like walking a tightrope. If the company doesn’t succeed, there’s a chance you could lose your investment, so it's crucial to do your homework!
The conversion process kicks off when the startup raises a new round of funding. Investors can then exchange their notes for shares – it's a win-win when the company grows!
When the maturity date rolls around, the startup typically has to repay the principal or convert the note into equity. It’s like a check-up that tells both sides what comes next!
Startups in Aurora may go for a Convertible Note because it’s quicker to close than traditional equity. It gives them a lifeline to raise funds without getting into the nitty-gritty details right away.
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