JC Team Capital

Venture Capital Investment saw a surge over the years. However, 2021 gave a special boost to it. Reports suggest that the world found growth over multiple streams. Furthermore, investments for startups working in a different sector are just a part of the venture capital investment culture.  The FinTech industry saw massive support due to the digitalization of payments. Therefore, its investments were more leaning towards it. However, it wasn't limited to it, as the Indian market saw a strong IPO handle that changed the face of investments to a new height. Reports suggest that back in 2020, the global funding never reached $100 billion in a single quarter. Did startup investing yield any results? Well, there need not be any questions about the investing results. However, the query of results stands tall. In other words, Startup funding in India did shatter multiple records this year. The Q1 and Q2 were slightly off due to the pandemic hit. However, the Q3 held some outsta...

For startups, seed funding is a daunting task to realize their vision and market penetration with innovations. Venture Capitalists (VC) firms take a call for providing funding to a startup company based on several factors and valuation caps is one of them. Founders often believe that the valuation cap sets the floor for the next equity round. Going by the evidence of seed funding in Canada, Ontario , it is to be a necessary foul for startups while raising seed capital. The investors admit that a valuation cap often acts more like an anchor and holds back value realization.     Valuation Caps and Startups   Venture capital firms take a lot of risk by investing in very early-stage companies. Convertible noteholders with a valuation cap can convert their outstanding amount into stock at the lower or the price per share in qualified financing- the first round of equity financing. Any convertible debt, convertible preferred stock, or another equity-linked derivat...