Glossary

Glossary

Term Book Chapter Definition
Convertibility Angel Investing: Convertible Notes Chapter 1: Introduction to Convertible NotesConvertible notes are a type of debt instrument that combines features of both debt and equity. They are commonly used in startup financing and can be an attractive option for investors due to their flexibility The distinctive feature of a convertible note is its ability to convert into a predetermined number of shares in the company at a predetermined valuation cap or at a valuation determined at a future funding round.