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Find out more information on how we use cookies and how you can change your settings in our cookie policy. It also makes any potential back-and-forth negotiation on such terms easier to manage. Convertible Promissory Note (details the terms of the loan, including the provisions for the loan to be converted into equity) Download the Convertible Promissory Note Term Sheet.
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However, one of our goals in drafting these documents is also to reflect "best practices" and avoid hidden legal traps, even if doing so means straying from current.
A convertible note is a form of short-term debt that converts into equity, typically in conjunction with a future financing round; in effect, the investor would be loaning money to a startup and instead of a return in the form of principal plus interest, the investor would receive equity in the company.
Securities to be Issued: Convertible Promissory Notes (the "Notes"). The Notes will be senior, in right of payment, to all other indebtedness of the Company. Convertible Note Term Sheet Word Template Free Download.
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