Yokum's blog post on the instrument is here: http://www.startupcompanylawyer.com/2012/08/31/what-is-convertible-equity-or-a-convertible-security/ http://www.sta

Yokum's blog post on the instrument is here: http://www.startupcompanylawyer.com/2012/08/31/what-is-convertible-equity-or-a-convertible-security/ http://www.startupcompanylawyer.com/2012/08/31/what-is-conve... I don't think that investors call debt at maturity in practice (in general - I have heard of one Midwest-based investor that used default to pretty well screw the company), but this reduces that risk. Also, it appears sets the date for capital gains tax treatment to be earlier, which is a win for the investors. (Although the "probably" qualifier in TechCrunch and in Yokum's post scares me a little.)