[ravibala1]

So we raised on a convertible note with a cap and a discount. We're from the east coast and our accessible angel pool balked at SAFEs. An argument for a different thread :-).

I'd defer to Paul's point that choosing a too high (or non-existent) cap makes no sense. We did have to negotiate our cap and we set it so that we had a realistic shot of hitting 2-3x that in Series A pre money which in my mind is why an angel should be investing. I'd personally consider it a disappointing outcome if I raised at my cap and I'd hope my investors would as well.

A cap is not a valuation and I agree that everyone thinking it is, is a problem.