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Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. (For more on working with startup lawyers, see Mark Suster’s classic post, How To Work With Lawyers At A Startup.).

Finance 178
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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

In most cases, an early stage startup will raise seed capital from more than one investor. This “ uncapped note ” example ignores the concept of a valuation cap , which we’ll take up in a future installment. per share for 2,000,000 shares of newly issued Series A Preferred Stock.

Finance 79
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Raising Capital? 3 Tips for Entrepreneurs – Part 2

Scott Edward Walker

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. Finally, unless the startup is raising at least approximately $750,000, it generally is not in the company’s interest to issue shares of preferred stock.