______ is a short-term loan that can be turned into equity when future financing is issued.

Question

Quizplus · Accepted Answer

Convertible debt is a type of short-term loan that can be converted into equity when future financing is issued, typically during a later stage of the company's growth. This allows early-stage companies to obtain funding while postponing valuation negotiations until they have achieved more milestones or have a better understanding of their worth.

______ Is a Short-Term Loan That Can Be Turned into Equity