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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Lawyers should use standard forms, and investors should cap their lawyer fees at $7,500-10,000 for a seed round of this size.

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Should you raise on convertible notes or do an equity round?

Hippoland

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. What major terms you should look for / be aware of / ask for?

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