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Convertible Note

Raise early money fast — a convertible note is debt that converts to equity at your next priced round, with a discount and/or valuation cap. Generate a free draft.

What is a Convertible Note?

A Convertible Note lets a startup raise money quickly without fixing a valuation now — it’s a loan that converts into equity at the next priced round, usually with a discount and/or a valuation cap to reward the early investor. It’s popular for early/bridge rounds.

In India, convertible notes have specific regulatory conditions (including for foreign investors). This generator gives a starting draft — get professional support for the actual instrument.

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Convertible Note

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Important: This is an auto-generated draft template for reference only — not legal advice. Laws and your specific situation vary. Please have it reviewed by a qualified professional before signing. Get this agreement professionally drafted & vetted →
FAQs

Common questions

Both reward early investors: a discount converts their money at a percentage below the next round’s price; a valuation cap sets a maximum valuation at which they convert — whichever is better for them.

A convertible note is debt (with maturity and often interest) that converts to equity; a SAFE is not debt and has no maturity/interest. In India, convertible notes are more established. See our SAFE page.

Yes — including conditions on who can issue them and, for foreign investors, FEMA/RBI requirements. We can advise on compliance for your round.

Typically at your next qualifying priced round, or at maturity if no round happens — then it repays or converts per the agreed terms.

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