Glossary

Valuation cap

A valuation cap is the maximum valuation a startup can reach under an investment instrument such as a SAFE, KISS, or convertible note.

Feb 8, 2025brenda-silbermanlazo

What is a valuation cap?

A valuation cap is the maximum valuation a startup can reach under an investment instrument such as a SAFE, KISS, or convertible note.

This valuation cap can be pre-money or post-money.

Back to glossary

Keep exploring

Startup

A startup is an innovative company designed to grow exponentially and scale across multiple markets. In its early stages, it will face considerable uncertainty about the ideal product and business model to support that growth and scalability.

Feb 8, 2025

Accelerator and incubator

A business accelerator helps other companies grow in their early stages. An incubator, on the other hand, supports projects at the idea stage and helps them turn that idea into a product.

Feb 8, 2025

Annual Recurring Revenue

Annual Recurring Revenue, or ARR, means annual recurring revenue. It is the total amount of predictable, recurring revenue a startup generates from its customers each year.