What’s the role of convertible notes in a cap table?

Quick Answer:
Convertible notes turn debt into equity once a trigger event occurs.

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Learn More:
They’re often used in early fundraising to delay valuation discussions. When conversion happens, the note holder receives shares at a discount or capped valuation. This impacts ownership structure, so accurate tracking is crucial. Findex records convertible instruments and automatically updates equity once they convert.‍

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