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Convertible Notes

Convertible notes are loans that will convert into equity "triggered" by an event, e.g. another funding round. If no such event occurs, the debt is repaid at the maturity date set in the agreement unless the terms of the note allow for equity conversion at a discounted price at its maturity. If the convertible notes accumulate interest, the interest is also converted into equity.

Convertible notes operate on terms that are advantageous for both the investor and the startup:

For the investor, the advantage of convertible notes is the valuation cap or discount rate that applies during the conversion. The valuation cap is settled at the conversion time, and it will not increase during future rounds. Consequently, if the company's valuation has increased beyond the valuation cap of the note, the latter will convert into equity at the predetermined valuation price.

For the startup, it is a quick way of accessing capital at an early stage, removing the lengthy process of creating and issuing common stock. In addition, it allows them to postpone their valuation calculations to a later stage when improved financial performance allows for a more accurate valuation.

SeedBlink S.A. is registered in the Register of the Romanian Financial Supervisory Authority (ASF), under number PJR28FSFPR/400001, as of 03.11.2022 with an EU passport as per European Securities and Market Authority (ESMA) register of crowdfunding services providers.

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Conflicts of Interest

Quality Promise

Investing in start-ups involves risks, including loss of capital, illiquidity, dilution, lack of dividends. It is suitable only for investors capable of evaluating and bearing those risks. In any event, it should be done only as part of a diversified portfolio (meaning a portfolio in which investment in start-ups represents only a fraction of the total investments or assets). Before investing please read the risk warnings available at https://seedblink.com/generalterms as well as the risks related provisions of the investment facilitation agreement that will be provided to you for the relevant round. SeedBlink is not responsible for any information provided by the start-ups, even if distributed through or by SeedBlink. SeedBlink does not endorse any start-up for investment nor does it advise you on the merits of your investment. Seedblink does not provide to you any other advisory services. The decision to invest is yours only. If you require help in evaluating a decision to invest, you should consult a professional adviser. The messages and documentation you receive from SeedBlink or the start-ups have been neither verified nor approved by the Romanian or the European authorities. Nothing in this message shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful.