Valuation Cap

Convertible debt is a loan that transforms into equity during future funding. It allows founders to secure capital quickly while delaying complex valuation discussions until later.

A breakdown of the SAFE investment contract, explaining how founders use it to raise seed capital without immediate valuation and the risks associated with future equity dilution.

A convertible note is a loan that transforms into equity. This article explains the mechanics of the conversion, the importance of valuation caps, and how it differs from a SAFE.

A straightforward guide to the Post-Money SAFE, explaining how it calculates ownership, impacts dilution, and simplifies cap table math for founders and investors.

Understand the mechanics of the discount rate in early fundraising, how it rewards investor risk, and how it interacts with valuation caps.