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yitongzhang / angelcalc

redesigning the angel investment calculator built by Geoff Ralston
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Is the note discount % working properly? #4

Closed charliecf closed 7 years ago

charliecf commented 7 years ago

I don't see this variable being called anywhere else...

charliecf commented 7 years ago

Seems like the discount % is a discount from the VC price per share. This happens when the cap is significant enough.

I think the current formula we're seeing most of the time is where the note cap kicks in.

The formula goes something like: note_PPS = min( A, B) A = cap / (options + FD shares - existing options) B = equity price * (1 - discount)

This also effects the equity price, although not by much

charliecf commented 7 years ago

Found the issue... it seems like the method works, but requires entering the values in a particular way. This seems to be the case because once you've set the PPS_VC value to 0, you can't get it back up again without resetting it.

charliecf commented 7 years ago

Problem was the result optimizing to Infinity

function calc_vcShares(vc_investment, price_per_share) {
  vcShares = (vc_investment / price_per_share)
  return isFinite(vcShares) && vcShares || 0;
}

solves it!