Stand-Alone Convertible Note (Seed-Stage Startup)

A Stand-Alone Convertible Note (Seed-Stage Startup) is a legal template that outlines the terms and conditions for a financial agreement between a startup company and an investor during its early seed-stage.

This document serves as a formal agreement that enables the startup company to secure investments in the form of a convertible note, which is a type of debt that can later convert into equity shares. The template covers the key provisions related to the investment, including the amount invested, interest rate, maturity date, and the trigger events that would lead to the conversion of the note into equity.

By utilizing this template, both the startup and the investor can clearly define their rights and obligations, ensuring transparency and legal certainty in their financial arrangement. The Stand-Alone Convertible Note serves as a valuable tool for seed-stage startups to raise capital for their business while providing flexibility for investors to convert their investment into equity at a later stage if desired.