Convertible notes are often used for early-stage fundraising because they are fast and flexible, allowing companies to postpone setting a valuation. Common contracts include SLIP, SAFE, and KISS, all of which are supported on the platform as Convertible Notes.

From the financial instruments page, you can issue, edit, delete, or convert convertible notes.

This article explains how each action works.

You can access this page by clicking “Financial instruments” in the left menu.

You can issue a new convertible note in two ways:

Both open a side panel where you fill in the details.

Select who will receive the convertible note.

You can:

You must then define the financial terms of the instrument:

The amount of money invested by the stakeholder.

The percentage reduction they get when the note converts into shares.
(Example: A 20% discount means they get shares 20% cheaper.)

If the note includes interest, enter it here.
This interest is added to the loan amount before conversion.

A maximum company valuation used for the conversion.
If chosen, the investor converts at the better of the cap or the discount.

A condition that triggers the conversion.
This is usually a fundraising event of a certain size.

The date the note was agreed and signed.

You have two choices:

A) Share class agreed

The share class is already decided in the agreement.
Select one of your existing share classes.

B) Share class upon conversion

The share class is not fixed yet.
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You can write in the field the rules or details that should apply when the conversion happens.

Upload any documents:

Toggle on the option to send an email invitation, so the receiver can see the instrument in their Unlisted portfolio.

Click “Issue convertible note”.

The note will now:

Next to each convertible note in the list, you will see three dots.
Clicking them opens your management options:

Opens a side panel where you can change any of the convertible note’s details:

Save your changes to update the instrument.

Removes the convertible note completely.
This action cannot be undone, so use it carefully.

This is used when the convertible note must be turned into shares.

Click “Convert” to open the conversion panel.

The conversion panel includes several steps:

At the top, you will see:

This helps you confirm everything before starting the conversion.

Select one of the triggers:

You can also edit:

Company valuation at conversion

The valuation used to calculate the share price.

Settle date

The date the conversion happens.

Share class

You can change the share class the investor will receive, if allowed.

Comments

Add additional information about the conversion.

Unlisted shows you a visual preview of what will happen.

You will see:

This helps you confirm the outcome before finalizing.

Upload any documents related to the conversion:

You have two options:

Option 1: Save

This sets the status of the convertible note to “Converting”.
This is useful if you want to review the impact on the fully diluted cap table before issuing the shares.

Option 2: Convert and issue shares

This completes the conversion immediately.

The financial instruments page gives you full control over your convertible notes, from issuing them to editing, to converting them into shares. Before conversion, they appear on the fully diluted cap table alongside the other financial instruments and stock options.

You can:

Unlisted guides you step-by-step, helping you understand the financial impact before confirming any action.

This ensures accuracy, compliance, and a clear connection to your cap table and transactions.