After the main financial terms of a venture deal are agreed, it’s usually up to the lawyers to work out the actual price per share. This course explains how these calculations work, and suggests a couple of useful Excel tips.
How to calculate the conversion of a convertible note into preferred stock when the note has a discount, a valuation cap or both.
How to calculate dividends and liquidation preference in a venture financing deal.
How to calculate the investment amount and number of shares to be issued in accordance with an investor’s pro rata right.
Once the financial terms of a venture deal are set, the lawyers need to work out exactly how much each investor is investing and how many shares they’ll be issued. This course explains the calculations involved.