I want to raise €500k on a convertible with a 20% discount and a €2.0m cap. How much equity do I give away?

You “give away” a 17% stake in your company.

Ready to calculate how much equity you sell with your convertible?

1. Get the Excel. It’s free
2. Decide on how much money you need to achieve your first milestone
3. Set the discount on the convertible
4. Estimate the convertible investor’s pre-money valuation cap
5. Forecast how much money you need to achieve your second milestone
6. Predict the pre-money valuation for your first priced round

To simplify, ignore the interest on the convertible.