Convertible Note Generator

Convertible Promissory Note Generator

I built this convertible note generator to help founders raise seed capital with a proper debt instrument that converts into equity at a future priced round. Convertible notes remain one of the most popular seed financing instruments alongside SAFEs, particularly when investors want the additional protections that come with a debt instrument — including a maturity date, interest accrual, and creditor priority in bankruptcy.

This generator produces a comprehensive convertible promissory note that covers the key economic terms (principal, interest rate, maturity), conversion mechanics (valuation cap, discount rate, qualified financing threshold), and protective provisions (events of default, subordination, most favored nation). The document follows the structure commonly used by seed-stage startups raising between $100K and $2M from angel investors and small funds.

Every field updates the live preview instantly, so you can see exactly how your choices affect the final document. The conversion price calculation automatically adjusts based on whether you select a valuation cap, discount rate, both, or neither. Optional sections like pro-rata rights, information rights, board observer rights, and most favored nation provisions can be toggled on or off.

Key terms you should understand: the valuation cap sets a maximum company valuation for conversion purposes, protecting investors if the company's value skyrockets before the next round. The discount rate gives the note holder a percentage reduction off the price paid by new investors. When both are present, the note converts at whichever method yields more shares for the investor.