Want to create an interactive transcript for this episode?
Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Conversion of a Convertible Note
Description: Conversion of a Convertible Note Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are three ways a Convertible Note converts to equity. The note matures and converts to equity on the maturity date. The startup raises a follow-on funding round in equity that counts as qualified funding. The startup sells the business. In each case, the note converts to equity. If the convertible note does not have a maturity date, then it can stay in debt for the life of the note. This may be a problem...