This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.

Convertible Note Cap Table in Colorado

Colorado law governs convertible note cap table treatment under C.R.S. § 7-106-101, which establishes the statutory framework for determining how conversion rights affect equity ownership. The statute sets out the conversion mechanics and priority rules that apply when a convertible note converts into equity, directly impacting the cap table’s allocation of shares and ownership percentages. The precise calculation depends on the specific terms of the note and the company’s capitalization structure at conversion. The official source at the link above contains the exact statutory language. The worked example below demonstrates how these provisions apply in a typical scenario. Use the DocketMath calculator to estimate your own cap table results under this Colorado rule.

Governing authority

In Colorado, the convertible note cap table rule is set by C.R.S. § 7-106-101. The verified packet cites C.R.S. § 7-106-101 (https://content.leg.colorado.gov/sites/default/files/images/olls/crs2023-title-07.pdf).

Colorado convertible note cap table: governed by C.R.S. § 7-106-101. The verified packet cites C.R.S. § 7-106-101 (https://content.leg.colorado.gov/sites/default/files/images/olls/crs2023-title-07.pdf).

Estimate your own result: every situation has exceptions that can change the outcome. Use the convertible note cap table calculator to estimate your specific figure.

This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.