Likewise, a cap on a convertible note may be used by investors in the next round as an anchoring point to restrict the valuation in the next round. Both of the

Likewise, a cap on a convertible note may be used by investors in the next round as an anchoring point to restrict the valuation in the next round. Both of these effects are what a layman would think "shouldn't be real". From experience, both are extremely real. Too bad that the TV shows present these as sort of jokes. That disappoints me. No joke, these are dead real.