Convertible / Promissory Note Calculator
Originally published: 19/01/2022 14:22
Publication number: ELQ-48892-1
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Convertible / Promissory Note Calculator

Convertible note calculator showing the 3 different methods to calculate a convertible note with 3 scenarios per method.

Description
Convertible note calculator showing the investor / entrepreneur the three methods investors can calculate a convertible note (i. pre-money method, ii. percentage ownership, and iii. dollars investors method). Within each method, three scenarios are provided (i. discount and no cap, ii. no discount and a cap, and iii. both discount and cap included in convertible note). Users should note that typically the third scenario (discount and cap) will match one of the other two scenarios. The aim of this spreadsheet is to help guide the user through the slight complications and potential hick-ups later on if the convertible note is not properly documented and all calculations agreed before signing.

All information is summarized in a series of simple tables that can be easily copied into presentations and documents. Summary tables are broken down by method and then by scenario. Additional tables are at the bottom of each method showing the scenario breakdowns. These are different to the summary tables.

Along with the calculator are two PDF user guides. One shows the user how to set up Excel automatic and iterative calculations, and the other one shows how to use the calculator itself.

The user is advised that the note is to be used for guidance purposes only.

This Best Practice includes
1 Excel Document, 2 PDF guides

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