Cap Tables for Startup Founders Part 2: Convertible Notes
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- Опубліковано 18 січ 2025
- I'll teach you how convertible notes from angel investors impact your startup's capitalization table, including a detailed example in Excel. Time stamps below:
0:03 Intro and video agenda
0:53 Excel - Convertible note overview
5:20 Excel - Valuation cap
6:24 Wrap up
Excel table to follow along: drive.google.c...
Full cap table series:
Part 1: Pre-investment: • Cap Tables for Startup...
Part 2: Convertible notes: • Cap Tables for Startup...
Part 3: Series A: • Cap Tables for Startup...
Anything I missed? Let me know and I can discuss it later. Cheers!
Amazing stuff! Thank you for sharing - please keep updating with more great content on Venture Capital Valuation.
I work at a public accounting firm that specializes in mid sized companies. As many of these companies scale up their business they look towards private equity. I found this series to be emensley helpful with very clear explanations and examples. Great work and thank you!
You are making it simple, interesting, and fun. Thank you, really grateful!!
Thank you Stefan, this is such a helpful resource! 🙏 You wouldn't by any chance have an updated one that includes the valuation cap calculation? Again, thanks 🙏
Nice one. very well explained.
Appreciate the feedback!
hi Stefan, thank you for this. when i calculate days of interest accrued it gives me 360 not 184. could you please explain?
For both investors, the date of the convertible note funding was 7/1/2016 (tab "Convertible Notes pre A", Cells C7, D7) and the date of conversion occurred on 1/1/2017 (tab "Convertible Notes pre A", Cells C8, D8). That means we only accrue interest for the number of days between those two dates for 184 days (approximately half a year). Let me know if this helps or if you're referring to something else.
Thank you, this is extremely helpful! Can you provide a link to the excel sheet that contains this sheet with calculations for convertible notes? The excel in the comments link only contains the pre-investment cap table and a plain text version of the sheet shown here without inbuilt calculations - would be great to have the formatted sheet you use in this video. Thanks again!
The link is fixed so users can't edit the file anymore. All tabs are updated!
May I ask why you used 360 rather than 365?
No problem. Interest is commonly computed on a 360 day year for consistency. Very common on loans, credit cards, etc.
@@stefancolovic5847 Interesting to know! Thank you so much! You have made my cofounder vesting research much easier!
@@chrishall3326 appreciate the update. That’s what I love to hear!
At 5:01 you made a mistake, it should be _$115,654 worth of shares_ not _115,654 shares_