WebAnd so in both a priced round down for SAFEs, the formula stays the same. So, the pre-money valuation plus the amount of money raised equals the post-money valuation of the … WebA valuation cap applies to convertible notes and SAFEs. A convertible note is a capital raising instrument that acts as a debt in the form of a ... Both instruments typically offer a …
Valuation cap for SAFE Notes Eqvista
WebMar 2, 2024 · Some founders give each SAFE investor a different valuation cap depending on the value they’re adding; others stick to one valuation cap per round of SAFEs to keep … WebAnswer (1 of 6): It depends on the valuation of your company at Series A stage. I’m assuming your goal as founder is to convert SAFE investment at the highest valuation (and retain maximum equity). There are three possible scenarios: 1. Series A pre-money valuation is lower than $2.5M (CAP + 20%... paul soma belle center ohio
SAFE Calculator for the Y-Combinator Post Money SAFE
WebMany entrepreneurs think that a $4M cap means that any negotiated pre-money valuation higher than $4M results in the cap coming into play. But because of the 20% discount, the cap doesn’t come into play until the discounted amount exceeds the cap. In this example, that means the future valuation must exceed $5M before the cap comes into play. WebFor example, if the valuation of the company at the next priced round of financing is $10M and the previously issued SAFE has a valuation cap of $5M, then notwithstanding the new … WebThey are further explained below: A valuation cap, but no discount – A safe was purchased for $100,000 by an investor. The Discount Rate is 85% and the Valuation Cap is … paul solverson cchc