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The Legal Side of Entrepreneurship

YoungUpstarts

This past summer, the Lightspeed Summer Fellowships program invited selected guests to provide aspiring entrepreneurs a perspective into all aspects of starting a new company. The program provides entrepreneurs the resources and mentoring they need to build their companies and develop their skills. ” The Cost of Financing.

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A primer on convertible notes, convertible securities, and equity

Hippoland

In the 1990s, your first round of financing was typically a Series A round between $1m-$5m. Expenses were a lot higher just to get a company off the ground, so even the first round of financing was large. Raising money on a convertible note is fast — you get your money as soon as an investor signs. It’s cheap.

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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. Profitability is now a serious consideration among tech entrepreneurs. However, times are changing.

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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

The first milestone in a new startup’s financing is called ‘Seed Capital’ which refers to the initial investment raised by the founders from their friends and family, or commonly referred to as FFF (Friends, Family and Founders), who mostly use their personal assets. Convertible Debt Financing. Pros and Cons of Convertible Debt.

Finance 93
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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. As with so many subjects in law and finance, mastering the jargon is half the battle. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.

Finance 79