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Funding and ownership

Valuation cap

In a convertible note or similar, the maximum valuation at which the investment converts into shares, protecting early investors if the company's value rises fast.

A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.

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The note has a £5 million valuation cap and a 20 per cent discount.

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