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What Is a Convertible Note? Examples & How It Works

“In the $4 million of angel funding I have done using convertible notes, I use a 10% interest rate with a discount to the Series A round (20%), and a fair market cap depending on traction. It is easy to understand and investors have been OK with investing in my companies because they know how to make money using that fair formula.”

– David Metzler, CEO of CBDCapitalGroup