Definition
Term Conversion involves changing the terms of a financial instrument, such as converting a convertible note into equity shares during a startup`s equity financing round, according to predefined conditions.
Usage and Context
Term conversion changes a financial instrument’s terms, like turning notes into equity.
Frequently asked questions
What is the conversion method of convertible notes? Convertible notes turn debt into shares during a funding round.

What is a convertible conversion? A convertible conversion is the process of turning convertible debt or notes into equity shares, typically during a financing round.

What are the terms of a convertible note? The terms of a convertible note usually include the amount borrowed, interest rate, due date, discount for conversion, and valuation cap.
Related Software
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Benefits
Term conversion offers flexibility to adjust financial instruments to meet changing needs.
Conclusion
Term conversion offers flexibility to adjust financial instruments as needed.
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