Got a question? We'd love to help!
Can't find what you're looking for?
Email us: email@example.com
Let's say you hold a convertible note with a 20% discount rate. If a venture capitalist invests in that company at $20 million valuation paying $3 per share, your note converts to equity at $2.40 ($3.00 * .8) per share. Note that discount rates usually are only applied when the valuation is below the Valuation Cap.