Remove Convertible Security Remove Cost Remove Equity Remove Revenue
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More Tech Startups are LLCs

Austin Startup

C-Corp largely because (i) VCs have historically favored C-Corps for nuanced tax and other reasons, and (ii) virtually all of the standardized legal infrastructure around startup finance and equity compensation assumes a C-Corp. But going in the opposite direction costs you significantly. However, times are changing.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.” A convertible note financing is not a loan in the conventional sense.

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Pre-seed is the new seed

Hippoland

I’m of the belief that early ideas can never effectively deploy $4-$5m in a very cost effective way. Post-seed (pre-A) : This is a stage that was created, because the bar for the series A has gone sky high. And companies typically have $2m-$3m revenue runrate at this point. This really is what the series A used to be.

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Pre-seed is the new seed

Hippoland

I’m of the belief that early ideas can never effectively deploy $4-$5m in a very cost effective way. Post-seed (pre-A) : This is a stage that was created, because the bar for the series A has gone sky high. And companies typically have $2m-$3m revenue runrate at this point. This really is what the series A used to be.