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Startup

Convertible Note

New York

Asked on Mar 30, 2021

Do startups use convertible notes?

I am working to figure out what I should use for a group of investors I am speaking to about my startup. We're a technology company that is very early on. We want to raise a bit of money so we can further develop our software and pay the founders.

1 Attorney answer

Answer

Startup

New York

Answered 245 days ago

Ramsey T.

ContractsCounsel verified

Business Lawyer
Licensed in New York
Free Consultation

Start-ups do raise capital through the use of Convertible Notes. Convertible Notes are starting to fade as the preferred sort of convertible instrument for start-ups and as SAFES become more prevalent. Convertible Notes are still quite common in more "traditional" start-up industries, such as those that involve real estate, manufacturing and other legacy industries.

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