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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. I think my total legal bill for getting my seed round done for LaunchBit was something like < $3000. So early stage investors tend to be more wary of convertible notes / convertible securities.

Equity 48
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Am I a Founder? The Adventure of a Lifetime. « Steve Blank

Steve Blank

Yet for every founder there are 10-20 other employees who take the near-equivalent risks in joining an early-stage company. If you’re not a founder (by choice, timing or temperament,) you may be an early employee or a later stage startup employee. Will there be a lecture on getting seed money in a post crisis world?

Cofounder 219
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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. In Silicon Valley, most boards ultimately make decisions based on a consensus. Law firms that focus on emerging technology companies understand their legal issues from multiple perspectives and offer excellent advice.

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Timing: When to raise seed funding.

Scalable Startup

High growth startup companies need seed money to get things going. They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). At this stage you’re essentially selling yourself and your cofounders. They risk money they can afford to lose.

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Seed and Later Investments for Startups are Booming

Startup Professionals Musings

The number of startups getting seed funding in 2012 jumped by 65% over the previous year to a total of 1749, according to a recent report by CB Insights. Seed investments” are early stage financings (typically less than $1.5 Seeded companies will take longer to raise a next round. Stay alert. billion fund to work.

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Mile-High disruption: Why Denver should be on your tech radar next year

The Next Web

Roughly 1,200 miles away in the heart of Silicon Valley, San Jose Mayor Chuck Reed is pushing for restrictions that will shutter many of the city’s medical marijuana dispensaries. Like Silicon Valley, Denver is among the most educated cities in the U.S., Abundance of highly-educated and committed talent.

Denver 166
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The Corrosive Downside of Acquihires

Both Sides of the Table

For the past 5 years or so Google, Facebook and a handful of tech industry giants have been quietly buying scores of early-stage startups for their talent. Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. Let’s assume $2 million in seed money.