[yokumtaku]

Yes, it's the investor option to convert upon maturity into Series AA, not the company option to force conversion.

[sachinag]

OK, so in practice, what happens if the company can't raise a round? Do they just return what they can to the fund and close up the doors?

[yokumtaku]

The note stays outstanding. Generally speaking, there's no good reason for the investor to want to convert into equity, as debt is better in a bankruptcy situation.

Some companies might return money to investors before shutting down.