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Thanks! I'll reiterate obilgic's question since I don't know if your showdead is on: what is the ownership situation before, or in absence of, subsequent fundraising? Would a company be considered automatically split into some number of shares at some point?

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.

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