In this insightful guest blog, Stefani Bozadzhieva from leading valuation platform Equidam explains the pros & cons of convertible debt. You have probably heard of the concept of convertible loans. Quite frequently convertible debt is considered the better or even easier financing option compared to raising an equity round. Is that really the case?
First things first, if you think you need a quick refresher on what convertible debt is check out this video.
Has convertible debt really won?
These are two of the most frequently mentioned advantages of convertible debt over equity. Let’s take them one by one.