This is a convertible note[1], just like the previous incarnations. Which means that the amount of equity it is worth isn't determined until a priced round happens (where a valuation is set).
Thanks, i see.. is there a requirement on when to take more funding then? what would happen if the startup didn't take further funding (put remained profitable)?
If I remember correctly there's a year long grace period after which the investors can choose to force the note to convert. I don't know much about how that works though.
[1]: http://techcrunch.com/2012/04/21/convertible-note-seed-finan...