Latest / The Series A Show with Fexingo: Early-Stage Funding, Pitch Decks, and Startup Milestones
Why Founders Are Raising Convertible Notes With Revenue-Based Caps
Episode 131 of The Series A Show digs into a specific fundraising structure gaining traction in mid-2026: convertible notes with revenue-based valuation caps. Lucas walks through how a B2B SaaS startup called Portage recently closed a $4.2 million round using this hybrid instrument — tying the cap to 8x annual recurring revenue rather than a fixed pre-money number. Luna challenges whether this actually protects founders from dilution or just shifts risk to later rounds. They reference the recent 16 percent drop in Tesla's stock over five days as a reminder of public market volatility…
The skinny
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