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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. Flexibility With an equity round, there’s a specific amount of money you are raising.

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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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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). To me, this is the best time to raise your seed. Without funding most tech startups will die. Option Two: Post-Launch?—?Raise

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10 Reasons Why Capital Shouldn't Make Or Break Your Startup

Startup Professionals Musings

For most of us, though, the idea of investors or even securing financing may as well go the way of the corporate ladder. With a bank account full of someone else's money, it's hard not to feel flush with cash and have a false sense of security. Businesses can be built on sweat equity.

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Want $50k in Seed Funding? Apply now.

ReadWriteStart

The $50k seed money isn't a grant, but an equity investment by Capital Innovators. Norse-Corp.com , a real-time Internet security vendor. Capital Innovators has put together a complete package to help startup businesses who want to grow to the next level, refine their offerings and get connected to the right advisors.

St. Louis 124
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Tiered Valuation Caps

Austin Startup

The valuation cap has evolved into a proxy for valuation, even though by definition it is in fact a cap on valuation, and if things go south, the actual valuation at which the security converts goes downward with it. Normally this is accepted as given, much like how when you close an equity round, the price you got is the price you got.

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Why you shouldn’t keep your startup idea secret

cdixon.org

link] Security. ???????? ????????? ???????. ??????? ???? ?????????? ? ???????????. ????? ????????????. link] What’s the right amount of seed money to raise? Dividing equity between founders » Home. [link] Why you shouldn’t keep your startup idea… « Paul M. Watson. [.] blog comments powered by Disqus.

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