Convertible Note Purchase Contract with Short-Form Note (Seed-Stage Startup)

This legal template is a Convertible Note Purchase Contract specifically designed for seed-stage startups under USA law. In the startup ecosystem, a convertible note is a common type of investment instrument used during early stages to raise capital.

This template outlines the terms and conditions agreed upon by the startup and the investor for the purchase of a convertible note. The document provides a concise and simplified version of the convertible note, making it suitable for seed-stage startups that may not require extensive legal complexities.

Key provisions included in this template may cover the purchase price of the note, the interest rate, maturity date, conversion terms, and other relevant terms to protect the interests of both parties. The conversion terms define how and when the note can be converted into equity or repaid by the startup to the investor, depending on certain predetermined triggers or events such as future financing rounds.

As this contract template is created under USA law, it is aligned with legal requirements and practices in the United States. It offers a standardized framework for startups to efficiently negotiate and execute convertible note investments, ensuring legal protection and clarity for all parties involved.