• Brun Hvidberg posted an update 2 years, 1 month ago

    The convertible note cap table is one of the vital tools in the sales world. This is how you are able to make sure that the deal that you are getting into would really be something that would benefit the both of you. What is startups ? Well, this is a table that would show you all the details about the convertible note that you have and the values that it has.

    Now, what is really interesting about the convertible notes is that they come in different forms. Some are known as the founder stock notes while others are known as the limited partnership notes. Whatever it may be, each of them has the same function – to provide information to the future note investors so that they will have a clear understanding of what they are getting themselves into. It may just make the whole process of buying these notes more transparent for you.

    There are a lot of things that you can learn from the convertible note cap table. One of these is how to get your prices down as much as possible. When it comes to buying these kinds of notes, there are a lot of people who would want to go with the companies that have the cheapest prices. This is why they end up with low quality businesses that do not really provide good value for the money that they are requesting from the note investors. With this in mind, here are some tips on how you can be able to get the right kind of deal.

    First, make sure that you calculate your total amount of money that will be involved in the next round of negotiations. This is something that will determine the kind of payments that you will receive on the convertible notes that you have agreed to sell. If you think that the total amount that you will receive in the next round will not be enough for the interest that you will accumulate, then you should try asking for additional accrued interest. This is the second step that you should take if you want to ensure that you will be able to receive the payments and the accrued interest that you will get.

    The third thing that you should do is to make sure that you have calculated your percentage of conversion. Remember that the longer time that you will allow for the company to convert the notes, the lower the percentage that you will get. If you think that there might be a possibility that the company will not convert the convertible notes in the next round of negotiations, then it would be better if you can wait for the process to be completed until the next day. This is because it will be easier for you to convert the convertible notes into an escrow account once the company finishes converting it in the next round. It is important for you to remember that this should not happen if you want to ensure that you will receive the payment and the accrued interest that you will get.

    In addition, you also have to check the closing date that the company stated when they are going to close the deal. If it is still early, it would be better if you can wait for the closing date until the next round. You have to do this in order for you to get the best results. If you know that it will be too difficult for you to wait for the closing date to be completed, then you should get your convertible note evaluated immediately so that you will be able to determine if you can really sell it in the next trading period.

    Another factor that you have to consider is the trading commission that you will be paying. Keep in mind that most companies that offer convertible notes will be charging you a commission that will be higher compared to other companies. This is one of the disadvantages of the convertible note. If you are going to compare the charges from other companies, it is advisable that you get information from other people who are dealing with convertible notes. This way, you will be able to determine whether you need to negotiate for a lower rate or you need to request for a higher rate.

    Always keep in mind that you are not only investing your money but also your time. You should be very careful with how you handle your convertible note. It is important that you can sell it in an effective manner. Since you are going to use your convertible note as capital, you have to know how to properly spend it. In this way, you can earn more profit and at the same time, you can minimize the charges from other companies.