[asg]

From the documents, it appears that the holder has the option to get money back, or shares in the event of a merger/acquisition. They also have priority rights over shareholders in the event of a dissolution.

So no, they DO derive economic benefits, but it may be a long time coming.

[Edit: this is almost the same as convertible notes. The only difference is that as a debt holder they may be able to force a resolution at maturity, but that is usually to the detriment of the company. But as the preamble says, most angel/VC investors dont actually want to be a debtholder"