What's a Convertible Note? | Startup Funding Option Explained

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In this video, we're going to talk about startup funding and one of the ways that you can do that is through something called a convertible note.

When companies are raising capital to expand their business, they have two ways of going about it.

They can either take out loans from the bank, friends, or family or they can issue equity
in their company.

What a convertible note does is it blends those two different models. So what a convertible note is it's a short-term loan or a short-term debt instrument that has the option of being
converted into equity at a later point in time.

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#SteveParr #ParrBusinessLaw