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The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. “If you’re going to raise $1 million, my advice is to propose a convertible security, because you can get it done quickly and less expensively,” said Schmitz. Convertible Securities.

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The state of Q2 2018 pre-seed/seed-stage fundraising: Part 1 - crypto version

Hippoland

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. Basically, early customers buy into a new startup’s token at a special price, and those customers benefit from that price if the company does well. B) Operations costs more.

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article thumbnail

The state of Q2 2018 pre-seed/seed-stage fundraising: Part 1 - crypto version

Hippoland

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. Basically, early customers buy into a new startup’s token at a special price, and those customers benefit from that price if the company does well. B) Operations costs more.

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Pre-seed is the new seed

Hippoland

And/or getting your first set of customers. This is a bit of a crap shoot, because even if a pre-seed investor is bought into you as an awesome operator, if he/she is not bought into your thesis, it will be difficult to land an investment. I’m now seeing more rounds get done with convertible notes and securities for much longer.

article thumbnail

Pre-seed is the new seed

Hippoland

And/or getting your first set of customers. This is a bit of a crap shoot, because even if a pre-seed investor is bought into you as an awesome operator, if he/she is not bought into your thesis, it will be difficult to land an investment. I’m now seeing more rounds get done with convertible notes and securities for much longer.