Convertible Note Calculator Excel Template (Excel XLSX)

Startup Companies Raise outside funding to run the business operations and for growth from different investors, including angel investors, traditional venture capitalists, friends, family and high-end investors. But no one would like to invest in a company with no great pitch or valuation; hence, Startups now frequently use convertible notes to raise money. This Convertible Note Calculator Excel Template is beneficial if you want to know the cap table before and after conversion.

A convertible note is a short-term debt that has the provision to change into equity at a later date. So initially, it is structurally debt. Still, later on, it becomes an equity investment when the note holder gets his shares for the accrued interest and principal amount based on the agreed-upon valuation Cap and Discount rate. Investors go for Convertible Notes because they believe the business will grow. Hence, their equity in the startup will be greater than the debt's interest.

Why startups go for convertible notes
They are simple and fast. The startups get funding very quickly through notes only.
For issuing convertible notes, there is no need of valuation. However, for a round of funding, the startup needs to have a valuation done which is complicated at the very beginning of the business.
Convertible loans contain a valuation Cap which puts an upper limit at which the investment will convert into equity. This guarantees that the startup doesn't give much of its stake at a low price.
Sheets of the Convertible Note Calculator Excel Template
1. Instructions
The sheet contains information about convertible notes, when and why startups should use them and how to use the template.


2. Assumptions
The assumptions columns are highlighted with peach fill, which you must enter according to your startup data, and the calculator will calculate the cap table automatically.


3. Cap Table Pre-Seed Funding

You don't have to enter anything in this sheet. The sheet calculates the pre-seed cap table from the assumption you will enter in the assumption sheet.

4. Cap Table Post-seed funding

The sheet calculates the equity amount, no of shares, ownership % and the change in ownership from pre-seed funding for all the shareholders.

5. Dashboard

The dashboard is a graphical representation. It includes the graphs of components of the cap table pre-seed and Post-seed and valuation.