Conversion Deal Structure Founder Startup 
View from Seed
OCTOBER 21, 2014
As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging. Lower-Than-Market Value.
Hunter Walker
JULY 4, 2023
A few reads for an American holiday Uncle Sam reading a magazine while an eagle sits on his shoulder, digital art In Conversation with 50 Cent (Carvell Wallace/Vulture) – 20 years later and reading his name still triggers memories of In Da Club’s opening beats. And it changed the way artists look at deal structures.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
David Teten
OCTOBER 1, 2015
I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. What are the terms of their relationship with the founder? That said, I’m not sure of the most appropriate structure.
Startup Professionals Musings
SEPTEMBER 14, 2010
It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Outline multiple tranches. Marty Zwilling.
Startup Professionals Musings
JANUARY 27, 2012
It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Outline multiple tranches.
A Smart Bear: Startups and Marketing for Geeks
JUNE 27, 2011
There are plenty of folks who wouldn’t sell their company for a billion dollars; Jason Fried and Joel Spolsky are public examples from the bootstrapped startup world. What if someone offered you a million dollars for your startup, right now, check in hand — would you take it? Most, but not all. So let’s haggle.
Gust
OCTOBER 21, 2011
For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.
Expert insights. Personalized for you.
336 
Let's personalize your content