A seed-stage company valued on the anticipation of future growth.
With a convertible note, an investor effectively lends money to a startup and receives equity in the business instead of a return in the form of principal plus interest. Convertible notes typically convert into equity in conjunction with a subsequent financing round.
For angel investors, a successful portfolio has an effective internal rate of return of about 22%.
3 Even though this may appear like a fantastic investment to investors and too pricey to entrepreneurs with startup companies, such company endeavors rarely have access to cheaper forms of funding like banks.
To Know more about future growth.
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