Contact Us:

To learn more about our investment banking
services, call us toll-free at
(800) 216-3710.

Convertible Notes - Professional Convertible Note Services

Many startups and investors agree to use convertible promissory notes to facilitate early stage investing. As with any investment scenario, there are advantages and disadvantages to this approach.

This page contains information about convertible note agreements, as well as Growthink's professional convertible note consulting and development services.

Request a Convertible Note Quote

Call to speak with a consultant now, or click here to contact us online.

What is a Convertible Note?

It is a simple promissory note, usually bearing interest and payable at some future date. The unique aspects of a convertible note are:

  1. It converts into equity in the company so long as certain agreed metrics are achieved
  2. Conversion rather than repayment is the usual intention of the parties
  3. The usual metrics for conversion (a "conversion event") could be some or all of:
    • Later financing acquired of an agreed minimum level;
    • Developmental milestones reached by the company; and/or
    • Strategic partnerships concluded with important companies;
  4. The conversion into equity is usually at a valuation that is consistent with the valuation agreed to with investors in an investment round that occurs at a later time.

What are the Benefits?

  1. Avoids a valuation dispute between founders and the convertible note lenders
  2. Brings founders and convertible note lenders onto the same side of the table in determining valuation with later investors
  3. Can be concluded and transacted relatively quickly

What are the Drawbacks?

  1. If the conversion event doesn't occur, the note remains due
  2. If the note isn't paid off, the convertible note lenders may be able to foreclose on the company's IP or other assets
  3. The company doesn't have a "demonstrable valuation" that has been agreed to in an arms' length financing transaction

About Growthink

Growthink is a investment bank (FINRA, SIPC) that assists privately-held firms with convertible note and private placement offerings. Since 1999, Growthink has developed business plans, convertible note agreements, and private offering memorandums for hundreds of businesses. Our clients have raised more than $1 billion in private financing.

Call To Request a Convertible Note Quote

Or, fill in the fields below and a Growthink professional will contact you shortly.


With Growthink on your side, you are in a win-win situation. They placed themselves in my situation and analyzed my business as if it were their own business. I could never recommend any firm but Growthink to provide business consulting services at this level of quality.

Prem Kapani
Reemak Mortgage Funding

Growthink is a full-service business, representing you through the whole process - very important value-added service. We've been very impressed with the professionalism and kindness that Growthink has shown us in the rather complicated world of commercial financing.

Debra Soto
Air Del Mar, Inc

More Testimonials

Important: Growthink will never share or sell your personal information and we will keep all business information completely confidential.

Related Products and Services

Growthink on