A kind of capital
Convertible / conditional debt
Money that arrives as a loan and may end as equity. Cheap while it is debt, dilutive if it converts.
Convertible and conditionally-repayable instruments sit between the two things they are named after. The company receives capital, carries it as an obligation, and the funder holds a right to convert into shares on defined terms — often at the next priced round, sometimes at the funder's option after a period.
The attraction is that it postpones the valuation argument: the money can arrive before the company can be priced sensibly. The cost is that the eventual dilution is decided by terms agreed today, and founders regularly underestimate what a conversion discount is worth to the holder.
Treat it as equity for planning purposes and be glad if it is not. The register marks these programmes as dilutive for exactly that reason.
On the register
No programme on the register currently provides capital in this form. The register grows one researched scheme at a time — when one lands, it will appear here.