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Convertible Note Agreement

Investor-ready Indian convertible note agreement template capturing investment amount, interest, valuation cap, discount, conversion triggers, maturity and default protections for startup financing.

Takes 5 minutes ~2 pages Expert drafted
convertible notedebt convertiblevaluation capdiscountqualified financingmaturitydefaultstartup funding
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What is a Convertible Note Agreement?

A configurable convertible note agreement for Indian startups raising early-stage capital as convertible debt with valuation caps, discounts and clear conversion mechanics.

When should you use this?

Common situations where this document is the right choice.

When raising seed or bridge funding in the form of convertible debt rather than priced equity.
When investors want downside protection and upside participation while deferring valuation to a future round.
When aligning with Indian legal requirements on debt, foreign exchange and securities while using market-standard note terms.

What's included

Key sections and clauses in this document.

Detailed note issuance, ranking and interest provisions.
Automatic conversion on Qualified Financing with discount and valuation cap.
Configurable maturity outcomes: repayment, conversion or investor choice.
Default events and default interest protections for investors.
Standard representations, covenants, governing law and arbitration clauses.
Simple Process

How it works

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Frequently asked questions

Everything you need to know before creating your document.

Are convertible notes common in Indian startup funding?+

Convertible instruments, including notes and compulsorily convertible debentures, are increasingly used at seed and bridge stages as they are faster to close and can defer valuation negotiations to a later equity round.

How do valuation caps and discounts work together?+

At conversion, the noteholder typically converts at the lower of a discounted price to the next round and the price implied by the valuation cap, ensuring a favourable entry price for the investor.

Legally valid

Compliant with Indian law

Expert drafted

By certified legal professionals

Secure & private

256-bit encrypted storage

Instant download

Word + PDF, edit anytime

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Takes 5–7 minutes · Legally valid in India · Instant Word + PDF download

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Convertible Note Agreement

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