• Launchopedia
  • Home
  • How to…
    • Recent Posts

      • 4 Easy Steps to Improve Startup Funding Efficiency

        4 Easy Steps to Improve Startup Funding Efficiency

      • 14 Types of Information Investors May Request as Part Of Their Due Diligence Checklist for Your Startup [Infographic]

        14 Types of Information Investors May Request as Part Of Their Due Diligence Checklist for Your Startup [Infographic]

      • 8 Things the Founders Must Know for their Pitch to an Angel Group

        8 Things the Founders Must Know for their Pitch to an Angel Group

      • Which Accelerator Should My Startup Apply to Attend?

        Which Accelerator Should My Startup Apply to Attend?

      • Where Should You Incorporate Your Startup? Delaware!

        Where Should You Incorporate Your Startup? Delaware!

    • More in How To

      • How to Build a Winning Team
      • How to Create a Strategy, Vision and Mission
      • How to Create an Advisory Board
      • How to Get Funding
      • How to Improve Your Company
      • How to Improve Your Pitch
      • How to Start Your Company
  • Funding Life Cycle
    • Concept Stage
    • Seed Stage
    • Early Stage
    • Growth Stage
    • Mezzanine Financing
  • Startup Ecosystem
    • Recent Posts

      • Accelerator Success Stories

        Accelerator Success Stories

      • Startup Accelerator Spotlight: Alchemist Accelerator

        Startup Accelerator Spotlight: Alchemist Accelerator

      • Startup Investor Spotlight: Boise Angel Alliance (BAA)

        Startup Investor Spotlight: Boise Angel Alliance (BAA)

      • University Entrepreneur Spotlight: Columbia University

        University Entrepreneur Spotlight: Columbia University

      • Accelerators Focusing on Women-led Startups

        Accelerators Focusing on Women-led Startups

    • Startup Stories

      • Business Startup Spotlight
      • Women Entrepreneurs Spotlight

      Startup Infrastructure

      • Startup Accelerator Spotlight
      • Startup Investor Spotlight
      • Entrepreneurial College Spotlight
      • Entrepreneurial Ecosystem Spotlight

      INFOGRAPHICS

  • …
    • About

      • About Launchopedia
      • LaunchXL – Launch Your Idea Today
      • Our Story
      • Meet the Team
    • Resources

      • Infographics
      • Entrepreneur Dictionary
      • Acronyms for Startups
      • FAQs
      • Consulting & Advisory
      • Ask a Question
    • Media

      • Webinars
      • Media Packet
      • Launchopedia Logo
    • Connect

      • Facebook
      • LinkedIn
      • Twitter
Launchopedia
    • Home
    • How to…
      • Recent Posts

        • 4 Easy Steps to Improve Startup Funding Efficiency

          4 Easy Steps to Improve Startup Funding Efficiency

        • 14 Types of Information Investors May Request as Part Of Their Due Diligence Checklist for Your Startup [Infographic]

          14 Types of Information Investors May Request as Part Of Their Due Diligence Checklist for Your Startup [Infographic]

        • 8 Things the Founders Must Know for their Pitch to an Angel Group

          8 Things the Founders Must Know for their Pitch to an Angel Group

        • Which Accelerator Should My Startup Apply to Attend?

          Which Accelerator Should My Startup Apply to Attend?

        • Where Should You Incorporate Your Startup? Delaware!

          Where Should You Incorporate Your Startup? Delaware!

      • More in How To

        • How to Build a Winning Team
        • How to Create a Strategy, Vision and Mission
        • How to Create an Advisory Board
        • How to Get Funding
        • How to Improve Your Company
        • How to Improve Your Pitch
        • How to Start Your Company
    • Funding Life Cycle
      • Concept Stage
      • Seed Stage
      • Early Stage
      • Growth Stage
      • Mezzanine Financing
    • Startup Ecosystem
      • Recent Posts

        • Accelerator Success Stories

          Accelerator Success Stories

        • Startup Accelerator Spotlight: Alchemist Accelerator

          Startup Accelerator Spotlight: Alchemist Accelerator

        • Startup Investor Spotlight: Boise Angel Alliance (BAA)

          Startup Investor Spotlight: Boise Angel Alliance (BAA)

        • University Entrepreneur Spotlight: Columbia University

          University Entrepreneur Spotlight: Columbia University

        • Accelerators Focusing on Women-led Startups

          Accelerators Focusing on Women-led Startups

      • Startup Stories

        • Business Startup Spotlight
        • Women Entrepreneurs Spotlight

        Startup Infrastructure

        • Startup Accelerator Spotlight
        • Startup Investor Spotlight
        • Entrepreneurial College Spotlight
        • Entrepreneurial Ecosystem Spotlight

        INFOGRAPHICS

    • …
      • About

        • About Launchopedia
        • LaunchXL – Launch Your Idea Today
        • Our Story
        • Meet the Team
      • Resources

        • Infographics
        • Entrepreneur Dictionary
        • Acronyms for Startups
        • FAQs
        • Consulting & Advisory
        • Ask a Question
      • Media

        • Webinars
        • Media Packet
        • Launchopedia Logo
      • Connect

        • Facebook
        • LinkedIn
        • Twitter

Cap

August 3, 2016 by Alexa Cleek -

The maximum company valuation at which a convertible note will convert into a company’s stock.7


Related Terms

Valuation | Convertible Preferred Stock | Series A Preferred Stock

Related Articles

The Holy Grail of Entrepreneurship: Part 3 – The Capitalization Table

Dead Pool
Black Swan

Alexa Cleek

    Funding Lifecycle
    • Concept
    • Seed Stage
    • Early Stage
    • Growth Stage
    • Mezzanine Financing
    Ask the Sage
    Glossary of Terms
    Books
Do you have an investable startup? Find out now.

Popular Posts (Past Month)

  • effective vision statementClarify the Vision – 10 questions to create an…
  • How Conceptual Thinking is the Essence of StrategyHow Conceptual Thinking is the Essence of Strategy
  • Entrepreneur Dictionary150+ Startup Acronyms for Entrepreneurs
  • Term SheetThe Holy Grail of Entrepreneurship: The Term Sheet, Part 1
  • shark tankHow “Shark Tank” Revealed the Difference Between…
  • Offering TermsThe Holy Grail of Entrepreneurship: The Term Sheet,…
  • Due Diligence Checklist14 Types of Information Investors May Request as…

© 2025 Funding Sage, LLC. • Terms of Use • Privacy • Site Map
design | INTELLITHOUGHT

Definitioner

HR
Human Relations
Valuation
The process of establishing the value or worth of an asset or a company. Factors impacting company valuation include it's market, management, technology, assets, capital structure and prospective future cash flows. 6
Convertible Note
A debt instrument that can be converted into another security, such as shares of common or preferred stock.6
Related Terms

Venture Debt | Capitalization Table | Series A Preferred Stock

Related Articles

Why Startup Investors Hate Debt

The Holy Grail of Entrepreneurship: The Term Sheet, Part 3 – Capitalization Table

Investable Companies #1: Is Your Startup Investable?

Convertible
Convertibles are the corporate securities, usually preferred shares or bonds, that can be exchanged for a set number of another form, usually common share, at a pre-stated price. Convertibles are appropriate for investors who want higher income than is available from common stock, together with greater appreciation potential than regular bonds offer. From the issuer's standpoint, the convertible feature is usually designed as a sweetener, to enhance the marketability of the stock or preferred.5
Related Terms

Stock Options | Series A Preferred Stock | Warrant

Related Articles

Giving Away Startup Ownership: How Much Is Too Much?