Then it's typically a loan with a pre-defined interest rate. A convertible note does not buy equity - thats what 'convertible' means - and 'note' means 'loan'.

Then it's typically a loan with a pre-defined interest rate. A convertible note does not buy equity - thats what 'convertible' means - and 'note' means 'loan'. So it's a loan that can convert to equity based on certain conditions. As I said, all of this is overly simplistic. It's just a 30,000 foot overview.