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Joe Monastiero

CEO, Founder nFlate

I need to set a valuation cap for our angel round. We're raising $1M, have strong interest from a number of angel groups and investors and now I need to propose a cap. The general message I'm hearing is (on a $1M raise, a compelling company and strong investor interest) that "it's not going to be $2M and its not going to be $10M". My lawyer suggested $10M, since founders are now being forcefully diluted by series A investors if the cap is too low and the valuation at A is too high. Of course, Angels are expecting $3M to $5M.

So, has anyone recently gone through this? I'd love to hear from both sides of the fence.