fbpx

Forum

Find answers, ask questions, and connect with our
community around the world.

  • Kalyani Sheth

    Member
    March 12, 2021 at 11:05 am
    banana-2 0
    crowns-1 Level 1

    Convertible Notes are currently in trend @Aryan , and I guess that’s why you want to know about it.

    So, a convertible note is a short-term debt that converts into equity. In the context of seed financing, the debt automatically converts into shares of preferred stock upon closing a Series A round of funding.

    In other words, investors loan money to a startup as its first round of funding. Rather than get their money back with interest, the investors receive shares of preferred stock as part of the startup’s initial preferred stock financing, based on the note’s terms. Also, this is one of the reasons why this is trending among startups.

¬© 2021. Mentor Monkey. All rights reserved‚Äč

Register yourself for next
tech-startup-launchpad
Pre-book your seat in the Job Ready Certification
Program now!

Join My Academy!

Learn the fundamentals of marketing, selling and entrepreneurship.
Gain real world skills which schools and colleges fail to teach:

– Job Ready Course
– Tech Startup Launchpad
– Entrepreneurs Blueprint

  • This field is for validation purposes and should be left unchanged.