Convertible note
A convertible note is a debt instrument that may convert into equity after specified events or on specified terms. It can include interest, maturity, discount, and valuation cap provisions.
Why it matters to a capital raiser
I track both the debt terms and the potential ownership impact of conversion.
Related terms
A term can mean something different in a particular deal, so read it with the governing documents. General education only. Not legal, tax or investment advice.