- Decide how much money you need to achieve your first milestone
- Predict the post-money valuation for your pre-seed round
- Determine the investment you need to achieve your second milestone
- Forecast the post-money valuation for your seed round
- Set the convertible investor’s interest rate
- 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.