TBC: Valuations, SAFEs & Convertible Notes Explained
TBC: Valuations, SAFEs & Convertible Notes Explained
In this episode of The Back Channel, Jason tackles the often misunderstood concept of valuation caps in fundraising. He walks through what a valuation cap is, how it works, and its role in SAFE agreements and convertible notes.
In this episode of The Back Channel, Jason tackles the often misunderstood concept of valuation caps in fundraising.
He walks through what a valuation cap is, how it works, and its role in SAFE agreements and convertible notes.
Jason explains how these caps affect the conversion of investments into equity during future funding rounds, and covers the difference between pre-money and post-money valuation caps.
The goal is to help founders better grasp the math behind the numbers, so they can navigate their fundraising with more clarity and confidence.
Episode Transcript
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