How the cap is negotiated with a convertible note investment
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How the cap is negotiated with a convertible note investment 1:13 min
Shudhan Kohli is a Co-Founder and CEO of Grey Elephant Ventures. He has spent 10 years shaping the growth trajectory of large and early stage businesses, spanning three frontier markets and four industries. His work was prominently featured in a book called “Sustainable Luxury and Social Entrepreneurship: Stories from the Pioneers” prior to handing over the reigns of his company. Shudhan then went on to consult over 200 high growth, early stage ecommerce businesses across the Americas; providing expertise in product development, project management, digital marketing and business development.
Generally the cap is balanced out with a discount rates on the convertible notes. It really varies from startup to startup, and from investor to investor. Some prefer a higher discount rate on the final evaluation, some prefer a lower cap on what they would be paying.
Generally the conversation is really a balance between these two. If there have been previous investors that have signed… Sign in to continue