Question
You have invested $800,000 in a startup through a convertible note with 20% discount and $2 million valuation cap. How many shares will you get
You have invested $800,000 in a startup through a convertible note with 20% discount and $2 million valuation cap. How many shares will you get if the note gets converted after a VC makes an investment at a pre-money valuation of $5 million? The pre-money share price is $10. Assume there is no accrued interest and that the cap and discount refer to the pre-money valuation.
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Heres how many shares youll get Discounted Valuation With a 20 di...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
