15+ Sample Convertible Agreement Template

Convertible Agreement and how to make it impressive to read

The convertible agreement is a form of short-term debt that will convert into equity, typically in the conjunction with the upcoming financing round. If you look at the effect of this agreement, the investor should be loaning the money to startup and instead of return in the formula of principle plus interest.

Sample Convertible Agreement 001

You will get more advantages when you are able to write this agreement properly. This one will not force the issuer and investors to determine the value of the company especially when there is not much to base a valuation on. The valuation is usually determined during the series A financing so that you should be careful in this part to write.

How to write convertible agreement with the proper way

To write this one in the proper way, the first step that should you do is convertible your note term. With this idea, you can create a convertible agreement template without any difficulties. In this part, there are few key parameters that should be kept on your mind in order to make the form easy to read for everyone.

Sample Convertible Agreement 002

After that, you also should pay attention to the discount rate. This one will represent the valuation discount. In this part, you can receive the relative to investors in the subsequent financing round where it will compensate you to get the satisfaction result especially when you are investing for earlier way.

How to make convertible agreement easy to understand

The typical this agreement will have a date of maturation. Usually 12 months from time of issuance. Moreover, generally it is just after the anticipated conclusion of the certain series of funding. Your agreement also will be impressive if you can make a list for the parties including the startup, company, holder, and investor.

In addition, a sub-section detailing issuance in this part is also important to understand. The convertible agreement form will need a sub-section to outline the term of sale of the notes and purchase of the stock. This one also will state any all warranties and also guarantees on your part of holder to make it safe to keep.

Be smart to write this convertible agreement to get more advantages

It is important for you to understand that this one is very friendly to early-stage companies and founders. Moreover, it will heed the word of warning if you cannot write it with the proper one. On the contrary, it will give more advantages for you if you can use it correctly. Because of that, being smart in writing the agreement is completely needed.

Gaining this purpose, you have to understand the valuation cap where it will set a threshold for the convertible. The investor usually will end up owning the larger stake of the company so that you should be careful in this way in order to make the investor understanding their position.


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With those ideas, you will get more advantages to write beneficial convertible agreement. You also can look at the sample of this agreement that will help you to lead the proper way in writing the agreement. With this way, you will not find any misunderstanding.

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