An explanation of how a convertible note works and the typical convertible note terms you'll see in a convertible note term sheet. Topics covered include:
Convertible note maturity date
Convertible note discount
Convertible note cap
Convertible note vs equity
We also discuss some of the advantages and disadvantages of using the convertible note as an fundraising vehicle.

In later videos in this series, we'll discuss other common options: the Simple Agreement for Equity (SAFE) and an equity investment using the Seed Series documents.

This StartupSOS channel provides practical, howto advice for new entrepreneurs who plan to build a growth startup with investor funding.