Remove Cap Table Remove Finance Remove Founder Remove Seed Capital
article thumbnail

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Raising Seed Capital. Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Convertible Debt Financing. Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.”

Finance 93
article thumbnail

Setting Up Your Accounting System

Feld Thoughts

When we were last with Dick and Jane on Finance Fridays, our fearless entrepreneurs were figuring out how to split up their founders equity and account for an investment from Jane. QuickBooks and other accounting software programs will do this for your finances, but you should also implement tools for tracking other key metrics (e.g.

article thumbnail

The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. and the investors, who put up $1m in a convertible note, get 0.1%.