The Various VC Funding Instruments
Not all venture funding tools are created equal. This guide breaks down the key instruments founders encounter — from SAFEs to Convertible Notes to Preferred Equity — and helps you understand which one might suit your company’s stage, goals, and risk tolerance.
Understanding Conversion Caps
Valuation caps can significantly affect how much equity early investors receive when their convertible instruments convert. This post explains how caps work, why they exist, and how they can tilt the balance between founder and investor upside during future fundraising.