Document background
The Convertible Note Agreement is commonly used in Qatar's growing startup ecosystem as a flexible financing instrument, particularly in early-stage funding rounds. This document is essential when companies seek bridge financing or want to defer equity valuation discussions to a later date. It must be structured in compliance with Qatar's legal framework, including the Commercial Companies Law No. 11 of 2015 and relevant QFMA regulations. The agreement typically includes detailed provisions on conversion mechanics, interest calculations, maturity dates, and investor rights, while potentially incorporating Islamic finance principles. It's particularly relevant for companies seeking to raise capital without immediately diluting existing shareholders' equity, while giving investors the potential upside of equity participation.
