Convertible note calculator pre money You can set up your model in seconds and run as many scenarios as you’d like—all you need are a few inputs: Benefit by using our financial tools and the convertible note calculator to make better decisions for your company. See the pre-money method in the convertible note calculator below. Since the cap price of $0. You can set up your model in seconds and run as many scenarios as you’d like—all you need are a few inputs: See full list on eqvista. 3531 is lower than the discounted price of $0. com Carta’s SAFE and Convertible Note Calculator empowers you to run these calculations with ease, allowing you to: View pre and post-money dilution before and after a future priced round, visualizing your ownership at multiple future valuations. Quickly calculate the impact of issuing a Convertible Note with cap, discount and interest on your cap table. They are primarily used for early-stage financings, but they are also a good solution for a bridge round when a company isn’t quite ready for the next equity financing round. ) Since 2018, post-money SAFEs have made it easier for founders and investors to quickly and reliably close deals with confidence. 86), the post-investment percentage ownership of the Series A Investors is 17. This lowers the effective pre-money valuation to $2,750,000 and dividing that valuation by the number of outstanding shares we get a price per share of $2. By utilizing various parameters, including the interest rate, discount rate, and valuation pre-money in the next funding round, it is possible to calculate a Convertible Note, determining the conversion into shares. Aug 16, 2024 · SAFE and convertible notes calculator. 5155. This is the best for you. Carta’s free SAFE calculator for founders allows you to model out your SAFEs and convertible notes. Founders: Booyakasha. The formula used to derive the price per share (PPS) than an investor will pay for a company's stock is the following: Nov 27, 2023 · The solution is to determine the economic value that the convertible notes represent in the fully diluted pre-money and then calculate the different entry prices: Step 1 : Calculate the economic value of the convertible note in the fully diluted share capital by determining the expected return on the convertible based on the agreed discount: Analyze up to 10 Convertible Notes and/or pre-money SAFEs, combined with up to 10 post-money SAFEs; Each Note or SAFE can have its own discount rate and valuation cap (pre-value cap or post-value cap for the pre-money SAFE and the post-money SAFE respectively) Jun 24, 2020 · Our SAFE and convertible note calculator will help you understand the potential dilutive impact of pre-money SAFEs, post-money SAFEs (aka YC SAFEs), and notes once they convert in a future priced round. Convertible Note Calculator SAFE Calculator Help center FAQs Partners Articles Monthly Newsletter Other Resources. 00 per share ($8 million divided by 1 million shares) and the conversion price for the notes or Safes would be $5 May 21, 2018 · To start off, here are the three ways to calculate the convertible notes: Pre-money method. 8 giving us a note value of $1,250,000. Equidam. While the pre-money valuation stays fixed at $8m (Or effective pre of $6. You accept money from several investors through SAFE agreements. Carta’s SAFE and Convertible Note Calculator empowers you to run these calculations with ease, allowing you to: View pre and post-money dilution before and after a future priced round, visualizing your ownership at multiple future valuations. You own about 60%. Aug 16, 2024 · → Check out our free SAFE and convertible note calculator to understand the potential future impact before they convert in a priced round. Y-Combinator released the new post-money SAFE in October 2018. Post-money valuation is calculated by adding the investment amount onto the pre-money valuation amount. Suppose a startup has raised $1 million in pre-seed convertible note financing. You can use the calculator to model different scenarios for how to fund your company with SAFEs before trying to raise a priced round. Pre-SAFE notes are more difficult to calculate ownership when there are more investors and notes compared to Post-SAFE notes. Post-Money Valuation Calculation Example. Using the assumptions above, the price per share for the new investors would be $8. For the example with two post-SAFEs (pre-money valuation of $15M, raise $5M), the YC post safe primer attached shows 448,671 pro-rata shares for Investor B (SAFE 2 in the calculator) worth ~$500,000 while the 50Folds calculator shows 273,276 pro-rata shares (Cell C124) worth $305,052 (Cell D26). Create your cap table , add your shareholders , stock grants, options, warrants and convertible notes and start managing your company’s equity . 5%). Apr 25, 2016 · We have one $1,000,000 note at a 20% discount. Model multiple Notes or Safes and a priced round to account for all anticipated fundraising activity between now and the completion of a future priced round. Now, we can apply the 20% discount to the Pre-money Share Price, giving us $0. Determine the Conversion Price and Shares. Like many loans, convertible notes come with maturity dates. A quick and easy convertible note calculator with the average and most used discounts. Maturity date. Convertible notes and SAFEs help startups get money when the finances aren’t clear. View pre and post-money dilution before and after a future priced round, visualizing your ownership at multiple future valuations. Created by Equidam and free for everybody to use. Say you’re raising a seed round. Sitwell Ventures knows that a post-money cap is more investor-friendly, but it is willing to offer a convertible note with a pre-money Jul 15, 2023 · Step 1. Remember that the convertible notes After the pre-money valuation, what gets counted as part a company's pre-money fully-diluted capitalization has the biggest impact on relative ownership stakes in a company after a financing. In general, the reason to go with a note is a shorter time period to receive seed funding and lower associated cost, though the cost of a priced equity round has come down. Pre-Money Valuation = ($5 million ÷ 20%) – $5 million = $20 million; 3. Jul 16, 2019 · The convertible note calculator calculates the percentage shareholding, number of shares, and value held by the investor, noteholder, and founders of the business, following the conversion of the loan note and the injection of the additional investment. Dec 6, 2023 · Using those assumptions, we can divide the investment size by the ownership percentage, and then subtract the investment amount to calculate the pre-money valuation. 4124, we use the cap price as the conversion price. 5% and the post-money valuation implied by this method is $11. This calculator lets you assess the impact of issuing a convertible note with a given discount and valuation cap, carrying an annual compound interest, in correspondence with a new investment round that triggers the conversion. Jun 24, 2020 · Our SAFE and convertible note calculator will help you understand the potential dilutive impact of pre-money SAFEs, post-money SAFEs (aka YC SAFEs), and notes once they convert in a future priced round. Dilution gets shared with the VCs; Nov 16, 2021 · Convertible notes and pre-money SAFEs are a quick and simple way to raise funds prior to money rounds (Series A, B, C etc. It’s a large change from the original pre-money SAFE that was released in 2013. Pre-Seed Convertible Note Assumptions. Before accepting capital from the convertible noteholder, the startup is 100% owned by the two founders, who collectively own 10 million shares. About us Careers Equidam Research Center Mar 25, 2025 · Pre-money Share Price = $6,000,000 / 11,639,396 = $0. Jan 24, 2022 · In the pre-money method, the pre-money valuation of the company is fixed and the conversion price for the notes or Safes is determined based on that. Aug 13, 2020 · Convertible notes are a great tool for venture financing. This means that post-money convertible note holders dilute the stakes of existing shareholders: it's always worth paying attention to the convertible note terms, as the pre- or post-money status can have a real impact on dilution in new funding rounds. May 22, 2023 · A pre-money valuation cap is similar to a post-money cap except that it does not take into account SAFEs and convertible notes when determining the Company Capitalization used to calculate the conversion price. 75. 43m ($2m divided by the % ownership stake, 17. Jul 25, 2024 · Pre-money valuation is calculated using either the Comparable, Venture Capital, or Berkus method. We take the discount: divide 1,000,000 by 0. . The post-money valuation can simply be calculated by adding the What is a Post-Money SAFE Calculator? It’s a free and very detailed Excel calculator which will show you in detail how both Pre and Post- money SAFE notes are calculated. 4124. hxfhu fbua saz szd wqw etqbmk hnamtj gkel ftfcjxy sbuegc cgjre wxie goa vivu xgew