Financial Analyst Explains Convertible Loan Notes (VC funding)

Before signing convertible notes founders should understand what they're actually agreeing to. That's what we're discussing here. You'll learn: - Why convertible notes exist - The 9 terms that determine your dilution - How valuation cap vs discount rate actually works - When the cap applies (and when it doesn't) - Founder-friendly vs investor-friendly terms for each component - Live conversion calculation with real numbers DOWNLOAD THE FREE EXCEL MODEL in the pinned comment below. If you're raising seed capital or investing at early stage, this is required knowledge. Download the model, play with the numbers, understand what you're signing. As a venture capital investor, I often encounter convertible notes. This explainer video breaks down the most common terms you'll find in these instruments, detailing nine frequently used clauses. Understanding these aspects is crucial for startup funding and navigating the world of investing.