Convertible Note

Définition

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.

Comment cela se présente dans le financement

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

Questions fréquemment posées

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.

Ressources Round Funded

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