A Convertible Note Contract is a financial product used in venture capital transactions. It enables an investor to put money into an early stage company with the goal of converting the original loan into equity at a later date. The Convertible Note Contract specifies terms such as when the conversion can happen, the conversion rate and any discounts or other benefits the investor may receive. By offering a flexible approach to funding, Convertible Note Contracts help bridge the gap between traditional forms of financing and a full-fledged equity investment. With the right Convertible Note Contract, companies have access to much-needed capital while keeping their cash runway intact.