Valuation Cap
Définition
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.
Comment cela se présente dans le financement
$100K on a $5M post-money cap converts to at least 2 percent even if the Series A prices the company at $20M.
Questions fréquemment posées
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.
Ressources Round Funded
Mettez ce terme en pratique
Les définitions ne gagnent des négociations que lorsque vous y êtes. Trouvez les investisseurs qui financent votre étape et commencez la conversation.
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