A venture has a $10,000 convertible note from a prior round and the entrepreneur has 10,000 shares. A new investor will invest $20,000 for a 40% equity interest in the venture. With no cap or discount, the entrepreneurs ownership interest would be valued at $20,000, the new investor would get 10,000 shares, and the early round investors note would convert to 5,000 shares. However, the note has a cap of $18,000 (based on the entrepreneurs ownership-the pre-money) and the note also has a 20% discount. It will convert based on either the cap or the discount, depending on which is better for the early investor. Under these conditions, it will be more advantageous to convert at the 20% discount. Note that it is not necessary to do the detailed calculations to answer this question. True, false, uncertain. explain.