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Startups & Venture Capital

Convertible Note

Also called: convertible loan note, CLN, bridge note

A convertible note is a loan that converts to equity at the next priced round, usually with a discount and a valuation cap. Being debt, it carries interest and a maturity date, which creates real pressure: if no round happens before maturity, the investor can in principle demand repayment from a company that has none. SAFEs were designed specifically to remove that cliff.

Where this is taught

Definitions are the trailer. These free levels turn Convertible Note into something you play — one bite-size lesson, with worked examples, a quiz and XP.

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