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.
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.