Convertible Note

Definition

A convertible note is a loan that converts into equity at a future priced round, carrying an interest rate (typically 4 to 8 percent) and a maturity date (typically 18 to 24 months), usually with a valuation cap or discount.

Wie es im Fundraising vorkommt

Notes preceded SAFEs as the default early-stage instrument; in 2026 they survive mainly in bridge rounds and some non-US deals.

Häufig gestellte Fragen

What is the difference between a convertible note and a SAFE?

A note is debt with interest and a maturity date that can technically be called; a SAFE is not debt, has neither, and cannot be called.

What happens at a note’s maturity date?

If no priced round has occurred, the note is technically repayable; in practice holders usually extend, convert at an agreed valuation, or negotiate.

Round Funded Ressourcen

Verwandte Begriffe

SAFE (Simple Agreement for Future Equity)Valuation CapBridge Round

Setzen Sie diesen Begriff ein

Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.

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