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What do I say to an investor if they question me on why the cap increased?

J
Written by Jasmine Sunga
Updated over 5 years ago

Hi [Investor First Name],

When first started our fundraising process, our initial goal was $XXk, to deliver on our near term Y month plan. Given we wanted to ensure our plan could be executed first, we were willing to accept a lower initial valuation. Now that demand has exceeded our expectations, we have to be mindful of dilution for the team and so we can only accept capital at the $ZM cap now.

I would love to have you involved, so please let me know if you there's any other questions I can answer for you, or if you'd like to jump on a quick call.

Looking forward to chatting more,

[Your Name]

[Your Signature]

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