Question
You invest $50k in a startups seed round using a convertible note with a pre-money valuation of $5M, 20% discount. Converts in 2 years, compounds
You invest $50k in a startups seed round using a convertible note with a pre-money valuation of $5M, 20% discount. Converts in 2 years, compounds daily (365), earns 8% annually.
There are 1 million share outstanding. What is the unrealized return, IRR and Cash on Cash Multiple? Valuation Cap is $1.5 million.
Question 1: Future value of convertible notes. USE 2 decimals.
Question 2: Original share price
Question 3: Number of shares the convertible notes holder receive. Use 3 decimals
Question 4: What is IRR?
Question 5: What is Cash on Cash multiple? Use 2 decimlas
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