Model Your Convertible Notes

Fundwave makes it possible for investors to plug in variables such as valuation caps. discount rates, pre-money valuation and size of the option pool to determine the value of your convertible note after your portfolio company raises a new round.

Go to a portfolio company, and select 'Timeline' from the left menu, followed by the 'model' icon next to a convertible note.

1. Input the details for the upcoming fundraising round and tap the Model button.
   1. Amount raised: The amount company plans to raise in the upcoming round
   2. Pre-money valuation at which the company is raising funds
   3. Outstanding shares: The number of shares on the captable
   4. Existing share pool: Options not yet issued
   5. New option pool: Option pool size after next round

   6. Any other notes being converted: Select the notes being converted alongside your note
      
      
      
      

      Update instrument details

      To record key clauses such as discount rates and valuation caps, select the details icon on the top-left, or choose the instrument on the timeline.

2. Outputs

   1. Ownership: The number of shares you will be issued. The ownership chart shows a range of outcomes across multiple valuation markers
      
      .
      
      
      

   2. Capitalization: This section will show you what the cap table would look like if the modelled fundraising round was to be completed.
      
      
      
      

      Save a scenario

      Click on the Star icon to save the scenario for future reference

Next steps: Record a convertible note conversion

Fundwave makes it possible for investors to plug in variables such as valuation caps. discount rates, pre-money valuation and size of the option pool to determine the value of your convertible note after your portfolio company raises a new round.

You can find this tool by navigating to a portfolio company, and selecting Note Modelling from the left menu.

1. Choose the convertible instrument that you'd like to model.
   
   
   
   
   

2. Input the details for the upcoming fundraising round and tap the Model button.
   1. Amount raised: The amount company plans to raise in the upcoming round
   2. Pre-money valuation at which the company is raising funds
   3. Outstanding shares: The number of shares on the captable
   4. Existing share pool: Options not yet issued
   5. New option pool: Option pool size after next round

   6. Any other notes being converted: Select the notes being converted alongside your note
      
      
      
      

      Update instrument details

      To record key clauses such as discount rates and valuation caps, select the details icon on the top-left, or choose the instrument on the timeline.

3. Outputs

   1. Ownership: The number of shares you will be issued. The ownership chart shows a range of outcomes across multiple valuation markers
      
      .
      
      
      

   2. Capitalization: This section will show you what the cap table would look like if the modelled fundraising round was to be completed.
      
      
      
      

      Save a scenario

      Click on the Star icon to save the scenario for future reference

Next steps: Record a convertible note conversion