HomeGlossaryConvertible Note

What is Convertible Note?

A form of short-term debt that converts into equity, typically in conjunction with a future financing round. Unlike a SAFE, a convertible note is legally a loan, meaning it carries an interest rate and a maturity date.
Understanding Convertible Note is critical for startup founders navigating the venture capital ecosystem. Whether you are actively fundraising or just planning your capital strategy, grasping these terms helps you negotiate better deals and find the right investment partners.
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