You invest $50k in a startup’s seed round using a convertible note with a pre-money valuation of $5M, 20% discount. Converts in 2 years, compounds daily (365), earns 8% annually. There are 1 million...


You invest $50k in a startup’s seed round using a convertible note with a pre-money valuation of $5M, 20% discount. Converts in 2 years, compounds daily (365), earns 8% annually.


There are 1 million share outstanding. What is the unrealized return, IRR and Cash on Cash Multiple? Valuation Cap is $1.5 million.


Question 1: Future value of convertible notes. USE 2 decimals.


Question 2: Original share price


Question 3: Number of shares the convertible notes holder receive. Use 3 decimals


Question 4: What is IRR?


Question 5: What is Cash on Cash multiple? Use 2 decimlas

Oct 21, 2021
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