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.

Answer rating: 100% (QA)

Heres how many shares youll get Discounted Valuation With a 20 di... View the full answer