Convertible Note Template

Description
A convertible notes are used if an investor is loaning money to a startup, but instead of earning return via principal + interest, the investor gets equity in the company instead.

The main advantage of giving out convertible notes is that it's not necessary to work out the value of the company, which is useful when the company in question may not be much more than an idea. Valuation is generally instead determined when undergoing the process of Seed A financing when companies have more data off of which they can more easily work out valuation.

*Originally posted on BestEngagingCommunities.com*