Tag: conversion discount

  • How to Set a Convertible Note Discount

    How to Set a Convertible Note Discount

    A convertible note discount is one of the main economic levers in a convertible promissory note. Notes typically do not include a stated pre-money valuation. Instead, the note converts into equity in a later priced financing (often a Series A), and the conversion price is usually based on the price paid by new investors in…