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Is YC SAFE valuation cap same as valuation?

1 pointsby ash_rahmanabout 2 years ago
I am raising $100K to build a product, and then run some GTM strategies (that worked previously). Got 120+ paid users (mostly presales) and around 16K in revenue (~10 months).<p>Now whenever I am talking to early-stage investors, mostly angels, they are asking - how much in % will I get?<p>I am trying my best to explain, we are an early-stage company and don&#x27;t have a valuation. However, we are open to setting up a valuation cap.<p>The conversation gets difficult at this point. Let&#x27;s say I am asking for a $1M valuation cap and they are instantly getting confused&#x2F;furious how is your valuation $1M with $1.6K MRR only?<p>How to get around this?

1 comment

robocatabout 2 years ago
<a href="https:&#x2F;&#x2F;www.ycombinator.com&#x2F;library&#x2F;6m-understanding-safes-and-priced-equity-rounds" rel="nofollow">https:&#x2F;&#x2F;www.ycombinator.com&#x2F;library&#x2F;6m-understanding-safes-a...</a><p><a href="https:&#x2F;&#x2F;www.ycombinator.com&#x2F;deal&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.ycombinator.com&#x2F;deal&#x2F;</a><p><a href="https:&#x2F;&#x2F;youtube.com&#x2F;watch?v=otbnC2zE2rw">https:&#x2F;&#x2F;youtube.com&#x2F;watch?v=otbnC2zE2rw</a>
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