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.

Equity 48

Equity Convertible Security Silicon Valley Technical Review 48

YoungUpstarts

OCTOBER 28, 2015

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. Convertible Securities.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Hippoland

JANUARY 4, 2017

Here’s a quick primer on how investments tend to work in startup companies at the seed stage. 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. The results are binary.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

Austin Startup

NOVEMBER 6, 2017

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

Delaware 48

Delaware LLC Startup Silicon Valley 48

Business Plan Blog

NOVEMBER 13, 2013

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Some well-known Silicon Valley angel groups are Band of Angels, Sandhill Angels, TIE angels and others.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Hippoland

AUGUST 31, 2018

He has done incredibly well financially on his past two startups, and he’s now building his 3rd company. 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. This was surprising to me. This is typically a $6-10m round.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. At least one well-known Silicon Valley venture accelerator is using a document referred to as a “ convertible security ” rather than “convertible promissory note.”

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79