{"iri":"http://lmss.sali.org/RCUPRwxWXJ35yaRIp8mP8Sh","id":"RCUPRwxWXJ35yaRIp8mP8Sh","label":"Convertible Note","definition":"A Convertible Note is a form of short-term debt that converts into equity, usually in conjunction with a future financing round. The investor lends money to a startup and instead of getting the money back with interest, the investor receives equity in the company. Each convertible note is usually an unsecured, short-term debt instrument that converts into equity — typically preferred shares — under specified conditions, such as a future funding round. The conversion to equity can be mandatory in some conditions or elective in others.","prefLabels":["Convertible Loan"],"altLabels":["Convertible Debt"],"examples":[],"notes":[],"sources":[],"branch":{"iri":"http://lmss.sali.org/RCIwc6WJi6IT7xePURxsi4T","label":"Asset Type"},"parents":[{"iri":"http://lmss.sali.org/R7xqVevh0JKSwX977TRIZQV","id":"R7xqVevh0JKSwX977TRIZQV","label":"Loan"},{"iri":"http://lmss.sali.org/R8x0u39yCNHqlqk08vu3PPb","id":"R8x0u39yCNHqlqk08vu3PPb","label":"Promissory Note"},{"iri":"http://lmss.sali.org/RCAIUgUHLdwFdtdPTruyEgL","id":"RCAIUgUHLdwFdtdPTruyEgL","label":"Venture Capital Financing Documents"}],"children":[],"relations":[],"url":"https://lmss.io/tag/RCUPRwxWXJ35yaRIp8mP8Sh/","source":{"repo":"sali-legal/LMSS","ref":"3f9ac0c9357b2a971582ae79ede243511d47811d","channel":"pre-release"}}