Glossary

Valuation cap

The maximum valuation at which a SAFE or note converts into shares.

If the priced round values the company above the cap, the investor converts as if the valuation were the cap, so they get more shares per dollar. The cap is the real price of a SAFE; negotiate it like a valuation.

Related free tool

Learn the words, then get the score.

A free Founder Starter account gives you SeedScope’s startup score, a risk assessment and a summary, and puts your profile in front of investors. Founder Pro adds the full valuation, exit odds and the investors who viewed you, by name.