Convertible Loan Notes Explained

If you are an investor or an entrepreneur raising money for your business, you may have come across Convertible Loan Notes or CLNs. They are a special type of debt instruments that converts into equity at a later stage.

Enjoy!

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[favorhere]

Easy. Watched 2, 3 videos, didn't get it. You explain it very calm and without flashy editing. Subbed

[trjmediaproduction]

Fantastic Video. I watched it once and got it! I was able to understand the reason for a valuation cap before you provided the answer and that's thanks to you teaching skills. Top channel!

[emanuelgabbay]

That was clearly explained. Well done and thank you very much!

[SOuLSANCTVARY]

So good and easy to understand in a very short time

[adelaidetwumasi]

Wonderful video! Thank you very much for the detailed explanation.

[nickotim]

Thanks, man. This has given me a lot of clarity regarding convertible notes. However, the valuation cap is still a bit fuzzy for me.

[mplindquist]

Are there situations when investors use the convertible loan structure as a safety net if the startup can’t pay the loan back in cash, so they get shares instead?

[byronhill]

Thanks, would be interested to learn more and discuss your services to support further requirements.

[zubairkhokher]

Can anyone let me know that promissory convertible principle amount paid at maturity date or paid the principle at each month. Like
(PMT)

[techgod]

Sir can you please make a video on "reverse vesting " and "liquidation preference"

[stantan]

What happens if it’s a publicly traded company and the share price agreed on the note has dropped significantly?

[ExplainedExplanation]

Great content keep the great work coming.

Side note: do you happen to have any finance books that you would recommend ?

[kopanomofokeng]

Thanks. Will you please do one with a valuation cap.

[victorisyamba]

very well explained. In my case, I also take advantage of setting up a subsidiary for each CLN my holding company signs up with a Lender.
For example, my holding company is in the business of Agri Development with subsidiaries in agroforestry, agrilogistics, agri finance, agritech, Agriprocessing etc.
Each of the above subsidiaries run independently of each other but all are owned 100% by the Holding Company.
Whenever I want to raise capital from Investors, the process is simplified by matching the Investor with the subsidiary of their interest using the Convertible Loan Notes as the legal avenue to invest.
It is my simple way of dealing with Investors who are happy to know which specific area their investment is going into.

[pony]

Like if you’re here to understand $MSTR convertible bonds