The term ‘mezzanine financing’ refers to a hybrid form of debt and equity financing, similar to a SAFE or convertible note, except that it gives the lender the right to convert its debt position into an equity interest in the company in the event of default. Startups leverage mezzanine financing to fund growth projects and to help with acquisitions. Mezzanine financing is subordinate to senior debt, and superior to both preferred and common stock.