> Having a cap is an incentive for me to "grow until I'm 6 months away from X, then focus on raising instead".
This was my impression as well. I do understand that the deal has to be equitable for both sides. It also has to align interests and as your example shows, the cap doesn't.
The discount obviously makes sense since the seed funder is taking more risk.
This was my impression as well. I do understand that the deal has to be equitable for both sides. It also has to align interests and as your example shows, the cap doesn't.
The discount obviously makes sense since the seed funder is taking more risk.