Background Note | HBS Case Collection | September 2012

Convertible Notes in Angel Financing

by Ramana Nanda and William R. Kerr


This note introduces convertible notes in angel financing. It begins by delineating the differences between a priced and non-priced round. It then describes a specific example of a convertible note, with attention paid to technical details regarding valuation caps.

Keywords: financing; Finance; Entrepreneurship;


Nanda, Ramana, and William R. Kerr. "Convertible Notes in Angel Financing." Harvard Business School Background Note 813-017, September 2012.