Remove Convertible Security Remove Cost Remove Equity Remove Silicon Valley
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The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. “If you’re going to raise $1 million, my advice is to propose a convertible security, because you can get it done quickly and less expensively,” said Schmitz. ” The Cost of Financing. .”

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A primer on convertible notes, convertible securities, and equity

Hippoland

Equity Traditionally, investors have invested in companies to receive equity, or shares in a company. The concept of equity rounds (also called priced rounds) is very straightforward. And as you raise money at later stages, you will most likely be raising equity rounds. The results are binary.

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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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Pre-seed is the new seed

Hippoland

So, I thought it might make sense to take a step back and talk about all the stages of early stage fundraising here in the Silicon Valley. In early stage investing, at least in Silicon Valley, there are basically 4 stages: pre-seed, seed, post-seed (or pre-A), and series A.

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Pre-seed is the new seed

Hippoland

So, I thought it might make sense to take a step back and talk about all the stages of early stage fundraising here in the Silicon Valley. In early stage investing, at least in Silicon Valley, there are basically 4 stages: pre-seed, seed, post-seed (or pre-A), and series A.