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Three Startup Financing Myths You Should Avoid

YoungUpstarts

If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. Here are three pieces of advice that are tossed around Silicon Valley as if they are gospel, but they are really Startup Myths. Unfortunately, much of this advice is wrong.

Finance 205
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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

The first milestone in a new startup’s financing is called ‘Seed Capital’ which refers to the initial investment raised by the founders from their friends and family, or commonly referred to as FFF (Friends, Family and Founders), who mostly use their personal assets. Convertible Debt Financing. Raising Seed Capital.

Finance 93
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How to Fund Your Startup Without Losing Control

Up and Running

For a business that anticipates needing, for example, $500,000 in startup capital, that means that best-case scenario Klemm can expect to give up half of his business’s common stock (and an even larger percentage of control of the business once the deal’s fine print provisions are considered). Consequently, he passed.

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Should You Offer Equity Compensation to Employees?

Up and Running

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. If you’re in Silicon Valley and/or building any kind of tech startup, it’s considered the norm to offer equity as part of a compensation package.”.

Equity 60
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SAFEs v. Convertible Notes, updated.

Austin Startup

Because by an order of magnitude Silicon Valley has the most startups, VCs, large exits, etc., the majority of the content available online for founders to educate themselves comes from Silicon Valley. Apart from YC itself, Silicon Valley already is an aberration among startup ecosystems. Context matters.

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Raising Capital? 3 Tips for Entrepreneurs – Part 2

Scott Edward Walker

I’ve been helping entrepreneurs raise capital as a securities lawyer for 17+ years, and there are certain fundamental mistakes that I’ve seen entrepreneurs repeatedly make. Accordingly, I thought it would be helpful to share three basic tips for entrepreneurs in connection with raising capital. This is how the game is played.

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8 Hard-Earned Insights Into Raising Startup Capital

ReadWriteStart

So we asked a panel of eight successful young entrepreneurs from the Young Entrepreneur Council (YEC) about their startup funding successes (and failures) and the lessons they learned. Most entrepreneurs approach fundraising as a transaction. The best way to do that is to leverage the hard-won experience of real-world startup.

Cofounder 140