What is the valuation? Convertible with a discount

  1. Decide how much money you need to achieve your first milestone
  2. Determine the investment you need to achieve your second milestone
  3. Forecast the post-money valuation for your seed round
  4. Set the convertible investor’s interest rate
  5. Choose the convertible investor’s discount
  6. Estimate after how many months you get to your first milestone

Rule: equity investor’s equity stake after seed round = convertible investor’s equity stake after seed round.