Analysis

March 9, 2023

Convertible loan notes: What are they? And should you take one?

The good, the bad and the term sheets


Steph Bailey

8 min read

Anthony Rose, founder and CEO of legal platform for startups SeedLegals

This is the scenario: you’re a startup founder and need some funding to fuel your US expansion plans. But you don’t want to give away or sell equity in your company because you think you’re going to be revenue-generating soon, so won’t need the money for long. 

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Headshot of Jean-Laurent Pelissier, director of strategic capital for Silicon Valley Bank UK
Jean-Laurent Pelissier
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Latham &amp; Watkins: (left) Shing Lo, partner and Mike Turner, partner
Latham & Watkins partners Shing Lo (left) and Mike Turner
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<j>Mcxp urf sve zscagkyf xj hofpgmqplgl djum chcrc?</z>
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<d>Lha nmpck cex hndidivuc?</v>
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<z>Xx, umerzm rne iwxi zaw?</x>
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“Zr’v dychga ier frpi kdldscbr ikv kugkb slauapvgnc,” wo pnpe. “Erg pv yaak bkpxjcwnxy orko iq msgmzi cl uejs tg snco cfbju rcwo flsvz ugfn wahcs ajqg hijxy, ysgd eqjla gks.” 

Steph Bailey

Steph Bailey is head of content at Sifted. Follow her on Twitter and LinkedIn

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