article thumbnail

The Legal Side of Entrepreneurship

YoungUpstarts

The program provides entrepreneurs the resources and mentoring they need to build their companies and develop their skills. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Convertible Securities. Debt or convertible securities (e.g.,

article thumbnail

Should you raise on convertible notes or do an equity round?

Hippoland

Since this is a hefty topic that we could discuss for days, in this post I’ll aim to cover just the pros and cons of each from a founder’s perspective and will NOT cover: What is a convertible note, equity, or convertible security ? In general, I’m a big fan of convertible notes or convertible securities for seed stage founders.

Equity 48
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

More Tech Startups are LLCs

Austin Startup

Many angel investors, and also strategic investors, are comfortable investing in LLCs, particularly under a convertible security structure that doesn’t immediately result in equity holdings.

article thumbnail

Houston Startups can Pitch for a $50,000 Venture Investment

Austin Startup

If you win, you will receive a $50,000 investment from Capital Factory in the form of a convertible security ( see the application for more details ). Houston-based Syzygy Plasmonics is developing a green power source from hydrogen fuel cell technology and raised a $5.8 million Series A round. million in funding.

Houston 80
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. The bar for protocols is basically a solid idea with some development and a really reputable team. I’ll be breaking this down into 2 blog posts. Part 1 (this one) is about the token-based fundraising landscape.

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. The bar for protocols is basically a solid idea with some development and a really reputable team. I’ll be breaking this down into 2 blog posts. Part 1 (this one) is about the token-based fundraising landscape.

article thumbnail

What early stage fundraising in 2018 looks like?

Hippoland

It will be hard to raise a pre-seed round through traditional methods If you are raising money through traditional methods (such as with angels / micro VCs / VCs) via a convertible note or convertible security or equity deal, it will be a lot harder to raise pre-seed money in 2018. Cons: Slow.