Examples of Valuation Cap in a sentence
The term "Conversion Price" means an amount equal to the lesser of (i) eighty percent (80%) of the per share price paid in the Financing or (ii) the price equal to the quotient of the Valuation Cap (as defined below) divided by the aggregate number of outstanding shares of the Company's Common Stock as of immediately prior to the initial closing of the Financing (assuming full conversion or exercise of all convertible and exercisable securities then outstanding other than the Series Notes).
This User Guide describes a safe with a Post-Money Valuation Cap.
The safe holder’s ownership will be the greater of (1) what’s implied by the Post-Money Valuation Cap, or (2) what could be purchased for the Purchase Amount (i.e., the original amount invested under the safe) at the price per share paid by the new money investors in the priced round.
If the Equity Financing valuation does not sufficiently exceed the safe’s Post-Money Valuation Cap, then the safe holder will receive shares of Standard Preferred Stock at the lower price per share paid by the new money investors.
As a result, the safe holder will receive a greater number of shares than was originally estimated using the Post-Money Valuation Cap.