Safe & Convertible Note Calculator - Carta Release Notes - Product Updates
5 years ago 9/23/2020
Safe & Convertible Note Calculator
What’s coming:
- This scenario modeling tool helps founders predict the future impact of Safe and Note ownership when converted at a future priced round.
Who this affects:
- Users: Equity administrators, Law firm partners
- Packages: All packages (Launch, Starter, Growth, Scale, and IPO-Ready will receive this calculator)
What’s new:
- View pre and post-money dilution before and after a future priced round, visualizing your ownership at multiple future valuations.
- Model multiple Notes or Safes and a priced round to account for all anticipated fundraising activity between now and the completion of a future priced round.
- Assess the potential impact of different types of convertibles, including pre-money Safes vs. post-money Safes.
Timing: In September, all companies received access to this calculator.
Calculation Definitions For Reference:
Option Pool Increase
(Target Available Pool % * Post-Money Fully Diluted Shares) - Available Options
Post-Money Valuation
Preferred Price Per Share * Post-Money Fully Diluted Shares
Preferred Price Per Share
Pre-Money Valuation / (Current Fully Diluted Shares + Option Pool Increase + Converted Shares)
New Fully Diluted Shares
Current Fully Diluted Shares + New Money Preferred Shares + Option Pool Increase + Converted Shares
Conversion Price Per Share (Convertible Notes and Pre-Money Safe)
Lower of:
- (1 - Conversion Discount) * Preferred Price Per Share
- Valuation Cap / (Outstanding Shares + Outstanding Options + Available Options + Option Pool Increase)
Conversion Price Per Share (Post-Money Safe)
Lower of:
- (1 - Conversion Discount) * Preferred Price Per Share
- Valuation Cap / (Outstanding Shares + Outstanding Options + Available Options + Converted Shares)
Safe/Notes Ownership:
- Convertible Note Converted Shares / New Fully Diluted Shares
- Safe Converted Shares / New Fully Diluted Shares
Safe/Note holders post-priced round
Converted Shares / New Fully Diluted Shares
New investors post-priced round
New Money Preferred Shares / New Fully Diluted Shares
Your post-priced round ownership
Founder Shares / New Fully Diluted Shares
Dilution of Founder Shares
(% change in Founder Ownership / Current Fully Diluted Shares) * 100
Value of your shares post-priced round
Founder Shares * Preferred Price Per Share
David Zhang