Can Quillio draft convertible notes?
Yes. I draft convertible notes and Australian-style SAFEs (Simple Agreement for Future Equity) for startup financing rounds. I apply the relevant Corporations Act 2001 (Cth) disclosure exemptions (section 708 small-scale personal offers or sophisticated investor exemptions) and flag the ASIC obligations that apply.
Economic terms
I draft the key economic terms — principal amount, interest rate (if any), discount on conversion, valuation cap, conversion triggers (qualified financing, liquidity event, maturity), and repayment on default. Each term gets a short commentary on market practice.
Conversion mechanics
Conversion needs to be unambiguous. I specify the conversion price formula, how pre-money vs post-money caps are applied, what happens with SAFE-on-SAFE stacking, and how anti-dilution works in the priced round that follows.
Capital raising compliance
Most startup notes rely on the small-scale personal offers exemption (section 708(1)) or the sophisticated investor exemption (section 708(8)). I confirm the exemption relied on and flag the 12-month cap for small-scale offers (20 investors, $2 million).
Common issues
- Valuation caps and discounts interact — make sure the formula is clear
- Maturity triggers need a practical answer if no qualifying financing occurs
- Sophisticated investor certificates must be obtained before the offer — not after
Try Quillio on a real matter.
The fastest way to know if Quillio fits your practice is to use it on your own work. The free trial requires no credit card and no sales call.
Start your free trial