Valuation Cap

Definition

A valuation cap is the maximum company valuation at which a SAFE or note converts, guaranteeing early investors a minimum ownership regardless of how high the priced round lands.

Wie es im Fundraising vorkommt

$100K on a $5M post-money cap converts to at least 2 percent even if the Series A prices the company at $20M.

Häufig gestellte Fragen

Is the cap the same as my valuation?

No; it is a conversion ceiling, not an appraisal, though investors read caps as market signals when deciding to engage.

How do I choose a cap?

Anchor on what comparable companies at your traction level are capping, and budget total SAFE dilution to 15 to 20 percent before the priced round.

Round Funded Ressourcen

Verwandte Begriffe

SAFE (Simple Agreement for Future Equity)Post-Money ValuationDilution

Setzen Sie diesen Begriff ein

Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.

Datenbank der Investoren durchsuchen