Hippoland

MAY 16, 2018

Here’s what’s happening in the equity world (from my perspective): 1) Token sales in the crypto-world do affect “equity” raises. (I I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This leads me to point #3. E.g. $200k on $3m.

Seed Stage 48

Seed Stage Valuation Convertible Security Equity 48

Business Plan Blog

NOVEMBER 13, 2013

Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.” Convertible Debt” is a loan, which is automatically converted to equity at maturity or upon the closing of a round of financing. Bridge notes/loans are an example of convertible debt.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Gust

OCTOBER 5, 2011

A term sheet keeps things relatively straightforward by summarizing the most significant deal terms in outline form, whereas the deal documents themselves (often referred to as definitive agreements ) — even for a relatively simple convertible debt financing — inevitably contain some densely written legalese.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Hippoland

AUGUST 9, 2016

Get a standard convertible note (or convertible security such as 500 Startups’ KISS A), and fill it out. Typically, a lead investor will want to do a priced equity round, so you can convert your convertible notes into this equity round. Then start bringing checks in.

Lead Investor 48

Lead Investor Term Sheet Due Diligence Convertible Security 48

Hippoland

MARCH 30, 2018

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. 6) Because the bar for token sales has increased, blockchain companies are raising equity-based pre-seed rounds Funny enough – in 2017, a number of companies who could not raise from VC did successful ICOs.

Seed Stage 48

Seed Stage Syndicate Syndication Convertible Security 48

Hippoland

MARCH 30, 2018

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. 6) Because the bar for token sales has increased, blockchain companies are raising equity-based pre-seed rounds Funny enough – in 2017, a number of companies who could not raise from VC did successful ICOs.

Seed Stage 48

Seed Stage Syndicate Syndication Convertible Security 48

Hippoland

JANUARY 23, 2018

It will be hard to raise a pre-seed round through traditional methods If you are raising money through traditional methods (such as with angels / micro VCs / VCs) via a convertible note or convertible security or equity deal, it will be a lot harder to raise pre-seed money in 2018. You don’t give up equity or control.

Early Stage 48

Early Stage Convertible Security Seed Stage SEC 48

Hippoland

JANUARY 23, 2018

It will be hard to raise a pre-seed round through traditional methods If you are raising money through traditional methods (such as with angels / micro VCs / VCs) via a convertible note or convertible security or equity deal, it will be a lot harder to raise pre-seed money in 2018. You don’t give up equity or control.

Early Stage 48

Early Stage Convertible Security Seed Stage SEC 48

Board Effect

MAY 10, 2019

It’s important to note that the structure and contents of a cap table are unique to how a company has chosen to divide its equity. Cap tables are also used to model waterfalls and what-if scenarios, giving companies a better understanding of how different events might impact shareholder payouts and equity dilution.

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

Hippoland

AUGUST 31, 2018

4) Lastly, with the definition of “seed” expanding, more fundraising is done on convertible notes or convertible securities. I’m now seeing more rounds get done with convertible notes and securities for much longer.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

Hippoland

AUGUST 31, 2018

4) Lastly, with the definition of “seed” expanding, more fundraising is done on convertible notes or convertible securities. I’m now seeing more rounds get done with convertible notes and securities for much longer.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48