Fundraising & Investors
Valuation, SAFEs & term sheets
Understand the paper before you sign it.
What's the difference between a valuation cap and a discount on a SAFE?
A cap sets the maximum valuation at which your SAFE converts, protecting the investor's upside if you raise your next round at a high price; a disc...
How is my startup's valuation actually decided at the early stage?
At seed there's no spreadsheet truth; valuation is set by market comps, your traction, the strength of the team, and mostly by supply and demand fo...
What do the key terms in a term sheet actually mean?
Term sheets split into economics (valuation, option pool, liquidation preference) and control (board seats, protective provisions, voting). The sca...
How much dilution should I expect across seed and Series A?
Plan for roughly 10-20% dilution per priced round plus the option pool, and remember that stacked SAFEs at different caps all convert at once and c...