YoungUpstarts
OCTOBER 28, 2015
Startups need to understand how to manage the seed money they receive from investors and VCs. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Lawyers should use standard forms, and investors should cap their lawyer fees at $7,500-10,000 for a seed round of this size.
Hippoland
AUGUST 17, 2016
A reader named Turner Dean recently asked me whether it’s better to raise seed money on convertible notes or straight-up equity. In general, I’m a big fan of convertible notes or convertible securities for seed stage founders. Flexibility With an equity round, there’s a specific amount of money you are raising.
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Austin Startup
SEPTEMBER 10, 2017
The valuation cap has evolved into a proxy for valuation, even though by definition it is in fact a cap on valuation, and if things go south, the actual valuation at which the security converts goes downward with it. Traditional valuation caps: downside protection for investors. No upside for founders.
Hearpreneur
DECEMBER 9, 2018
I fully immersed myself in industry conversations, met ecosystem partners, and participated in social media discussions with next-generation entrepreneurs. Literally, one week later we had secured seed money, established business roles, added on another partner, ran the numbers, and started a pest control company!
Gregg Fraley, Author of Jack's Notebook
OCTOBER 12, 2012
Don’t base your decision on one or two conversations, do a thorough job of getting reactions from different sorts of people — potential customers, theorists in the niche, suppliers, visionaries, skeptics. Working for someone else feels more secure, but it really isn’t, as nearly 8% of the USA population has learned.
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