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The Legal Side of Entrepreneurship

YoungUpstarts

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.

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A primer on convertible notes, convertible securities, and equity

Hippoland

Here’s a quick primer on how investments tend to work in startup companies at the seed stage. Newer VC firms, though, typically do not pass their costs to their startups, which is much more progressive. He/she sets the valuation of your company and terms of the round. The results are binary. He/she may invest say $500k.

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Houston Startups can Pitch for a $50,000 Venture Investment

Austin Startup

Greetings from Houston Mural located in Houston Heights If your startup is located in the Houston region you may be eligible to compete for a $50,000 investment! Startups, submit your application Capital Factory Ventures Application Who Can Apply? Startups, submit your application now! They’ve raised $7.2

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

Gust

How to finance a new seed-stage startup? Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.”

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Seed rounds are dead

Hippoland

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This is both greater risk and reward – pre-seed funds can gain more ownership in companies by putting more money into the businesses at lower valuations. So we see higher valuations in this space.

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Seed rounds are dead

Hippoland

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This is both greater risk and reward – pre-seed funds can gain more ownership in companies by putting more money into the businesses at lower valuations. So we see higher valuations in this space.

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Do you need a lead investor in your seed round?

Hippoland

Get a standard convertible note (or convertible security such as 500 Startups’ KISS A), and fill it out. This can help you increase your valuation if you have another firm also give you a term sheet and/or you could potentially get a co-lead to mitigate signaling issues if one firm does not join your next round.