Remove Preferred Stock Remove Seed Capital Remove Startup Remove Valuation
article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

The most successful serial entrepreneurs in the world may found three or four, perhaps even eight or ten venture-backed startups over the course of their careers. For more on working with startup lawyers, see Mark Suster’s classic post, How To Work With Lawyers At A Startup.). Knowledge is power.

Finance 178
article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. Going back to Part I , recall that although a convertible note is technically a loan made to the startup, in practice these loans are rarely expected to be repaid. These deal terms are simple but significant.

Finance 79
article thumbnail

Raising Capital? 3 Tips for Entrepreneurs – Part 2

Scott Edward Walker

A sophisticated angel investor understands how the startup game is played and the role that he plays. If you’re an entrepreneur looking for seed capital, but don’t know any sophisticated angel investors, you need to hustle and build relationships in order to get “warm” introductions. What about issuing shares of common stock?