Valuation cap
Also: Cap
The maximum valuation at which a SAFE or note converts, protecting early investors if you raise the next round high.
A lower cap means early backers get more equity for their money — it's the most negotiated number on a SAFE.
Hear it from people who've done it
Get the real-world version of "Valuation cap" drawn from hundreds of conversations with founders and investors.
Ask the Network →Episodes on Fundraising
Investment Thesis with Kali Norman · 21 October 2026
Ian Gardiner's Investment Thesis | Investment Thesis with Kali Norman
ThincHer — You’re in Charge · 22 September 2026
Andrea Michaels: The Migrant Kid Who Became a Minister
Investment Thesis with Kali Norman · 18 September 2026
Mick Liubinskas' Investment Thesis
SAFE
A simple instrument that converts into shares at your next priced round, usually with a cap and/or discount.
Convertible note
A loan that converts into equity at a later round — like a SAFE but with interest and a maturity date.
Discount
A percentage break early SAFE/note holders get on the next round's price as a reward for backing you sooner.
← Back to the full glossary
Want a show like this for your fund or company?
We're W2D1 Media — the team behind the Day One Network, and we helped build Blackbird Ventures' Wild Hearts. We turn podcasts into trust, authority and pipeline.
