Data compiled in the last couple of years suggests that the start-up economy is worth over $3 trillion USD. This roughly equates to the GDP of the G7[1]. Start-ups embrace growth and innovation. Start-ups typically test assumptions that haven’t been tested before, through new technologies, products, and services. Funding is the life of a start-up, and start-ups raise funding through several avenues, such as angel investments, crowdfunding, venture capital firms, seed rounds and other lending arrangements. The vehicles used for seed funding rounds include convertible notes, preferred share issues, option contracts, sweat equity, SAFE (Simple Agreement for Future Equity) agreements, ASA (Advanced Subscription Agreements) and KISS (Keep It Simple Securities) agreements. This article looks at the convertible notes and analyses the Shariah concerns of such vehicles.