Venture Deals · glossary
The agreed number of shares a valuation cap is divided by: 6,000, being the 4,000 shares in issue and the 2,000-share pool. The early investors’ own agreements call it the cap capitalisation. Agreeing it avoids a circular sum. Schedule 3 · Chapter 6
Explained in Chapter 6, The Term Sheet and the Document Set, of Venture Deals.
The Cap Base is the agreed share count that a valuation cap is divided by. It is a number the parties choose, not a fact about the company. The angels' cap of €3,000,000 divided by 6,000 shares gives a price of €500 a share. Change the 6,000 and the angels' price changes with it.Read Chapter 6, The Term Sheet and the Document Set →
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