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Also question is, what is a valuation cap?

The Valuation Cap is the most important term of a convertible note or a SAFE. It entitles investors to equity priced at the lower of the valuation cap or the pre-money valuation in the subsequent financing. The valuation cap sets the maximum price that your convertible security will convert into equity.

Also Know, what is a conversion discount? The conversion discount refers to the discount from the price per share price paid by investors in the VC Series A that is used to calculate the number of shares of Series A issued upon conversion of the note into Series A. The discount generally seems to range between 20% to 40% depending on the situation.

Correspondingly, what is a cap note?

Specifically, a cap is a ceiling on the value of the startup (i.e., a maximum dollar amount) for purposes of determining the conversion price of the note — which (like a discount) thereby permits investors to convert their loan, plus interest, at a lower price than the purchase price paid by the Series A investors.

What is cap clean?

CAP define CAP Clean criteria. A clearly defined point-scoring system then enables those appraising the vehicle to record items requiring remedial work, with an item like a light scuff adding fewer points than a requirement for a new tyre.