Hi:

Congrats on getting the ball rolling with your business — and generating some interest from potential customers and investors.

As to your question, when a potential investor asks about your cap, they’re referring to the valuation cap you’re setting on your convertible debt issue. That would be the maximum valuation at which this issue would be converted into equity when its term expires.

Frankly, if you aren’t even incorporated yet you might want to pause the fundraising and focus on firming up your company’s foundation. You’re off to a great start but there’s a lot more to building a business than a prototype and some cash from a VC type.

If you wish to discuss, send me a PM through Clarity for 15 free minutes.

Cheers,
Kerby