Set up a Convertible Note Round

Create a convertible note round in Cake to manage your funding round with automated document generation and investor tracking.

Steps to set up your convertible note round

1. Navigate to Tools → Raise (SAFE) from the main menu

2. Click '+ Start New Raise'

3. Review the disclaimer and click 'Next' to proceed

4. Enter your round details:

   • Round name

   • Raise type: Select "Convertible Note"

   • Target close date

   Click 'Next' when complete

5. Configure your convertible note terms:

   • Raise goal amount

   • Valuation cap

   • Discount percentage

   • Interest rate

   • Maturity date

   • Capital raising event amount (the minimum funding round size that triggers automatic conversion)

   Click 'Next' to continue

6. Add company signee - Select who will sign documents on behalf of your company. You can add new signers directly in this step if needed

7. Enter bank account information where investors will transfer funds. These details will be automatically inserted into your investment documents and displayed to investors in their portfolio

8. Attach your Convertible Note Agreement - Click the Contracts tab in your round, then click the + button on the "Convertible Note" template to attach it. You can review and edit the template as needed. Merge tags will automatically populate with investor and round details when offers are sent. If you have your own Convertible Note Agreement, contact our CS team via chat and we'll ensure it's compatible and integrate it into your account

   

Next step: Add investors to your round to start sending investment offers.

Still need help? Contact our support team through the chat for assistance with your convertible note round setup.