Document background
A Convertible Promissory Note is commonly used in Singapore's startup ecosystem as a bridge financing tool, particularly in pre-Series A rounds. This instrument allows companies to defer valuation discussions while securing immediate funding. The document details the loan amount, interest rate, maturity date, conversion mechanisms, and investor rights under Singapore law. It's particularly useful when companies need quick access to capital but aren't ready for a full equity round. The note typically converts to equity at a discount to the next qualified financing round or at a predetermined valuation cap.
