Startup Glossary: Letter "V"

A Valuation Cap is a protective term in a SAFE note or convertible note that establishes the maximum valuation at which the investment converts into equity.

Venture Capital (VC) is a form of private equity financing provided by institutional firms to high-growth startups with significant scale potential.

Venture Debt is a type of debt financing provided to venture-backed startups, designed to extend runway between equity rounds without causing additional dilution.

Vesting is the process by which founders and employees earn the right to own their allocated stock options or shares over a period of time.