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you invested $100K in a convertible note during the seed round of a startup. The note had a $10M cap and a discount of 30%.
you invested $100K in a convertible note during the seed round of a startup. The note had a $10M cap and a discount of 30%. At Series A, the startup raises money at a $15M valuation (To avoid confusion, consider this Pre-Money). Would the discount or the cap apply on your convertible note? Please include your formula below.
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