Jul 16, 2019 · The convertible note calculator calculates the percentage shareholding, number of shares, and value held by the investor, noteholder, and founders of the business, following the conversion of the loan note and the injection of the additional investment.

Oct 24, 2019 · TL;DR: We’ve created a publicly downloadable template for a seed convertible note (with useful footnotes), based on the template we’ve used hundreds of times in seed convertible note deals across the U.S. (outside of California).

With Convertible Notes, startup investors contribute capital but do not receive direct ownership in the startup right away; instead, they earn interest and receive their shares later based on a conversion of the loan principal into equity when the company raises a “priced round” based on a specific valuation.

Oct 20, 2012 · Mark Suster wrote a great post covering why convertible notes can be a hidden tax on entrepreneurs. This topic has also been fairly well covered by a number of high profile Silicon Valley law firms so I’ve just constructed a spreadsheet to demonstrate the actual mechanics and allow you to play with the inputs.

Aug 13, 2020 · The conversion mechanics are dictated by the terms of the convertible note and may vary from note to note. For illustrative purposes, I’m going to break down how we calculate conversion shares at Vela Wood using circular references in Excel, based on our standard form convertible note.

Oct 18, 2023 · Here is an example of how you can create an amortization schedule in Excel for your promissory note with accrued interest followed by principal and interest payments. I'll use the example data you provided: Loan amount: $2,000,000; Annual interest rate: 12%; Disbursements: $500,000 on 10/13/2023; $1,500,000 on 10/17/2023

Jan 19, 2022 · Convertible note calculator showing the investor / entrepreneur the three methods investors can calculate a convertible note (i. pre-money method, ii. percentage ownership, and iii. dollars investors method).

Using a convertible note delays the need to determine the startup’s valuation until the startup carries out an equity financing round. This can be helpful for seed-stage startups with limited data points on traction, product and revenue or when there is no clear lead investor for the round.

This calculator lets you assess the impact of issuing a convertible note with a given discount and valuation cap, carrying an annual compound interest, in correspondence with a new investment round that triggers the conversion.

Using this Convertible Promissory Note template guarantees you will save time, cost and efforts! Completing documents has never been easier! Download this Convertible Promissory Note template now for your own benefit!