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The Legal Side of Entrepreneurship

YoungUpstarts

by John Vrionis, partner at Lightspeed Venture Partners. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. Convertible Securities.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.” ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. Convertible equity does away with interest altogether.

Finance 134
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Cap Tables Explained: Guide to Understanding Cap Tables

Board Effect

There’s the owner—maybe a partner or two—but unless employees are offered equity from the get-go, there’s typically not a whole lot of dilution. Over time, a company might issue new shares of capital stock or buy back shares of existing stock. Why do cap tables matter? Funding Rounds: Series & Capital Raised.