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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Milestone Your Valuation Caps
Description: Milestone Your Valuation Caps Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In strategizing your fundraising, it’s best to break your raise into tranches. Most raises start with a Convertible Note or SAFE Note so one uses a valuation cap rather than the actual valuation. Give the first tranche an investor-friendly valuation cap. For the second tranche, raise the valuation cap by 50%. In the pitch to investors make clear that there’s a limited amount of the low valuation cap equity. When those funds are raised, move to t...