Definition
The valuation cap sets a ceiling on the conversion price. If a startup raises its Series A at a $30M pre-money and you have a $10M cap, you convert at the $10M valuation — immediately getting 3x the shares of the Series A investors for the same money.
Frequently Asked Questions
What's a typical valuation cap?
Pre-seed: $5-10M. Seed: $10-20M. The cap should reflect traction. GitDealFlow's engineering momentum data helps justify higher caps for teams shipping fast.