Latest / The Startup Exit Podcast with Fexingo: IPOs, Acquisitions, and Founder Liquidity Events
How Founders Use Convertible Notes in Exits
On this episode of The Startup Exit Podcast, Lucas and Luna dig into the mechanics of convertible notes at exit time. They break down how founder-friendly notes with valuation caps and discounts can distort payouts, why some acquirers push to convert notes early, and how the note's conversion terms interact with liquidation preferences. Using a concrete example of a $10 million exit with a $2 million convertible note, they walk through the math of who actually gets paid. They also touch on how the current market, with big swings in tech stocks like Shopify and Meta this week, is shaping…
The skinny
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