Document background
The Convertible Note Agreement is a fundamental financing instrument in the Irish startup ecosystem, commonly used when companies need to raise capital quickly without establishing a firm valuation. This document type is particularly valuable during bridge financing rounds or when traditional equity financing may be premature or impractical. The agreement includes essential terms such as conversion triggers (typically qualified financing rounds, sale events, or maturity), valuation caps, discount rates, and interest terms, all structured to comply with Irish corporate and securities laws. It appeals to both companies seeking flexible financing options and investors wanting potential equity upside while maintaining the security of a debt instrument. The document must carefully balance the interests of both parties while ensuring compliance with the Companies Act 2014 and relevant financial services regulations.
