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Caps are definitely advantageous for the note holder. The increase the discount if the cap is exceeded. If you're an investor willing to do a bunch of $500K no
by abalone 11y ago
Caps are definitely advantageous for the note holder. The increase the discount if the cap is exceeded.
If you're an investor willing to do a bunch of $500K no-cap deals I know a lot of founders who'd like your phone number.
- gumby 11y ago> If you're an investor willing to do a bunch of $500K no-cap deals I know a lot of founders who'd like your phone number. I'll bet, but it was the other way around: a bunch of investors bought uncapped notes. I just find the caps make it complex to do the next (in this case first) equity round. And I want my cap chart to be as vanilla as possible.