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The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. “If you’re going to raise $1 million, my advice is to propose a convertible security, because you can get it done quickly and less expensively,” said Schmitz. Convertible Securities.

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What early stage fundraising in 2018 looks like?

Hippoland

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. Cons: Slow.

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What early stage fundraising in 2018 looks like?

Hippoland

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. Cons: Slow.

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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.) Because most startups will end up raising tranches of money from multiple parties, many startups will use convertible securities (SAFEs / KISSes) or convertible notes. E.g. $200k on $3m.

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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.) Because most startups will end up raising tranches of money from multiple parties, many startups will use convertible securities (SAFEs / KISSes) or convertible notes. E.g. $200k on $3m.

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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Have $1,000,000 in assets excluding the value of their primary residence. It gives in depth examples & templates explaining documents like Term Sheet, Cap Table, Convertible Securities plus the importance of 83(b) filing. Links to Download Arushi’s eBook. Apple iBook: STARTUP Financing, Equity and Tax.

Finance 93
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Do you need a lead investor in your seed round?

Hippoland

A few of my friends’ companies had no lead investors in their seed rounds, and they are now valued at hundreds of millions of dollars. Get a standard convertible note (or convertible security such as 500 Startups’ KISS A), and fill it out. Then start bringing checks in.