Frequently asked questions
What happens when a convertible note matures?
When a convertible note matures, it typically either converts into equity or the borrower repays the principal with interest.
How does a convertible note convert?
A convertible note converts into equity at a predefined rate, usually during a financing round or upon reaching a maturity date.
What is the difference between a safe note and a convertible note?
A SAFE note (Simple Agreement for Future Equity) converts to equity without accruing interest or having a maturity date, while a convertible note does both.