Is a Valuation Cap Pre or Post-Money?

Is a Valuation Cap Pre or Post-Money?

One of the main principles of financing a startup is to invest early to avoid risks. For this reason, many investors prefer to invest at a lower valuation to avoid paying more for the same amount of equity. During this stage of investing, a valuation cap provides an...
Is a Convertible Note Debt or Equity

Is a Convertible Note Debt or Equity

Is a convertible note debt or equity You are a new startup and you need to raise some capital. You have a great idea but no money. A convertible note seems like the way to go, but you are not sure how it works, or if and when you will need to pay it back. A...
How Do Convertible Note Caps Work?

How Do Convertible Note Caps Work?

Valuation Cap Convertible notes can be somewhat confusing, and learning the terms under it can lead to even more confusion. Convertible note caps tend to be highly beneficial to those involved, but understanding them can be highly tricky.  Convertible note caps...