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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. Background Reading: The best seed round structure is the one that closes.

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

” Mike Maples of Floodgate Fund may have the most Darwinian take on it all — always a surprise delivered in his warm, folksy Andy Griffith-like Texas accent. “That’s independent of how much money VCs have or how many companies funded. Entrepreneurs are survivors by nature. Open Sesame! (A A little too late).