article thumbnail

Tiered Valuation Caps

Austin Startup

TL;DR: Using a “tiered” valuation cap structure in a convertible note or SAFE can provide flexibility that bridges the gap between (i) what founders expect their company to be worth in the near future, and (ii) what investors are comfortable accepting now. Did you get a “good” valuation? What a valuation cap isn’t.

article thumbnail

Strategy Roundtable: Professional Investors Do Not Invest In $20 Million Markets

www.readwriteweb.com

O-Port Then Raymond McGlamery pitched the O-Port , a guitar and drum accessory company based in Houston, Texas. Through SEO and mommy blog PR, Lee can tap into this market. He needs to generate enough profit so that he can grow organically and build his business systematically, and without expecting a lot of outside financing.

article thumbnail

Strategy Roundtable: Professional Investors Do Not Invest In $20 Million Markets

www.readwriteweb.com

O-Port Then Raymond McGlamery pitched the O-Port , a guitar and drum accessory company based in Houston, Texas. Through SEO and mommy blog PR, Lee can tap into this market. He needs to generate enough profit so that he can grow organically and build his business systematically, and without expecting a lot of outside financing.