Plain-language glossary
Convertible note
A convertible note is a short-term debt instrument that can convert into equity in a later financing, often with interest, maturity, a valuation cap, and/or a discount.
For startup investors
Where this term changes your decision
Use this term to identify the instrument, economics, rights, or regulatory route in the actual documents. Do not infer current availability or suitability from a definition alone.
Reviewed August 24, 2026 · Educational information