A term used by Y Combinator that describes short “open source” documents that have been drafted for use in early-stage private company financing deals.
Conversion Price Cap
A conversion price cap is the maximum price per share at which convertible notes or SAFEs convert into capital stock at the time of the financing resulting in the conversion, regardless of the valuation agreed to by the company and the new equity investors.
A convertible note is an investment vehicle often used to facilitate investing in a company prior to establishing a valuation. Convertible notes are loans that generally later convert into equity.