The Technicians MBA Subscribe

The basics

Convertible note

A loan to a startup that turns into shares later, usually at the next funding round, often at a discount. In the UK, an advance subscription agreement does a similar job without being a loan.

A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.

You'll hear it as

We raised the pre-seed on convertible notes.

Also called Advance subscription agreement.

Related terms.

Videos.

No video mentions Convertible note by name yet. These are on the same topic, Business & startups.

The newsletter

The business side of technical work, in your inbox.

Free, through Substack. Unsubscribe whenever you like.