Center for Technology Commercialization

Brian’s Board – Investor Lingo: Capped vs. Uncapped Convertible Notes

Equity and Debt Financing, How do I fund my business?, Innovation Funding, How do I

When pursuing convertible notes, you MUST understand the difference in capped vs. uncapped to understand how much equity is being agreed upon. Investors need compensation for risk and this is often done through capped notes. Check out these examples from Brian:

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