Document background
The Convertible Note Purchase Agreement is a critical financing instrument commonly used by early-stage companies in Ireland seeking to raise capital while deferring company valuation. This document is typically employed when a company needs interim financing before a priced equity round, offering investors the opportunity to convert their investment into equity at a later date, usually with a discount to the next qualified financing round. The agreement must comply with Irish company law and financial regulations, particularly the Companies Act 2014 and relevant securities laws. It includes essential terms such as conversion rights, interest rates, maturity dates, and investor protections, while also addressing specific Irish legal requirements regarding security instruments and corporate governance. This type of agreement is particularly valuable for startups and growth companies as it provides flexibility in fundraising while protecting both company and investor interests.
