InvestorQ : Why has the timeline for converting of start-up debt been doubled to 10 years?
Arti Chavan made post

Why has the timeline for converting of start-up debt been doubled to 10 years?

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Rutuja Nigam answered.
2 months ago
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Government has extended the timeline for conversion of debt investments made in start-ups into equity from 5 years to 10 years. This is likely to offer relief in the aftermath of COVID-19. This new timeline applies to convertible notes. Incidentally, convertible notes have become extremely popular for early stage funding as they offer optional conversion to equity and fewer regulatory covenants and restrictions.

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