Understanding Convertible Notes

Summary: In this video, I explain what convertible notes are and how they work as an investment option for startups. Convertible notes are loans that use company stocks as collateral, making them a simpler and less legally complex alternative to traditional loans. I discuss the key components of convertible notes, including interest rates, discounts, valuation caps, and maturity. I also provide examples to illustrate different scenarios and explain the differences between convertible notes and saves. If you're considering raising funds for your startup, understanding convertible notes is essential.

Video Link: https://www.loom.com/share/debb6d974d404f2da6c8dc79b972b1a9?sid=243a2aa5-f32c-4e7c-963b-50a40ae1e58c