Convertible Note

Saved by 1 people (0 private), first by anonymouse user on 2007-10-30

convert the total amount of the note into equity when an institutional investor (such as a Venture Capitalist) makes an investment.

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The cost of borrowing is lower for the seller, with convertable notes, since the buyer has the option of converting it into stock.

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onvertable notes are a way for companies to raise capital without having to use their assets or give up ownership in their company.

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