Convertible Note

Convertible debt is a loan that transforms into equity during future funding. It allows founders to secure capital quickly while delaying complex valuation discussions until later.

A breakdown of the SAFE investment contract, explaining how founders use it to raise seed capital without immediate valuation and the risks associated with future equity dilution.

A convertible note is a loan that transforms into equity. This article explains the mechanics of the conversion, the importance of valuation caps, and how it differs from a SAFE.

Understand the mechanics of the discount rate in early fundraising, how it rewards investor risk, and how it interacts with valuation caps.

A bridge loan fills the gap between financing rounds. This article defines the term, outlines when to use it, and explains the risks of bridging to nowhere.

A bridge round provides interim capital to reach the next funding milestone. It buys time but carries dilution risks and signals specific messages to future investors.

This guide defines promissory notes for founders, detailing their legal structure, the difference between standard and convertible notes, and strategic uses in early-stage financing.