Convertible Notes: A Term-by-Term Guide for Founders and Growing Businesses
A convertible note is a financing instrument used in startup capital raising where an investor lends money to a company and the amount converts into shares when a specified event occurs, typically a future equity funding round. Convertible notes allow companies to raise capital now while deferring valuation until a later funding round. Convertible notes are one of the most commonly used investment instruments in Australian startup and growth-stage capital raising. They offer a practical way for investors to fund a business now, while deferring the point at which shares […]