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