You “give away” a 17% stake in your company.
Ready to calculate how much equity you sell with your convertible?
- Get the Excel. It’s free
- Decide on how much money you need to achieve your first milestone
- Set the discount on the convertible
- Estimate the convertible investor’s pre-money valuation cap
- Forecast how much money you need to achieve your second milestone
- Predict the pre-money valuation for your first priced round
To simplify, ignore the interest on the convertible.