Convertible loans are often positioned as the simplest way to raise at pre-seed. In reality, they’re a trade-off — and in the UK, that trade-off matters more because of the complexities of the EIS/SEIS system. A convertible loan note is debt first, equity later. Capital comes in now, but instead of pricing the company today, the loan converts into shares at a future round — usually with a discount and often a valuation cap. At pre-seed, that can be attractive. 🤩 Valuation is uncertain, speed ma