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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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A primer on convertible notes, convertible securities, and equity

Hippoland

Convertible notes In the 2000s, however, the cost to start a software company decreased dramatically. This is another deterrent to investors investing on a convertible note. Convertible Securities So as a happy medium, both YC and 500 Startups created Convertible Securities.

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More Tech Startups are LLCs

Austin Startup

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

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

Austin Startup

Any software, hardware, or CPG startup located in the greater Houston metropolitan area can apply to participate. 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 ). million in funding. They’ve raised $7.2

Houston 80
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$100,000 Autonomous Drones & Mobility Investment Challenge

Austin Startup

based startups working on hardware and/or software applications that leverage or enhance autonomous mobility can apply to participate. If you win, you will receive a $100,000 investment from Capital Factory on a convertible security (see application for more details). What is the Center for Defense Innovation?

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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. The market had definitely shifted. Cons: Slow.

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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. The market had definitely shifted. Cons: Slow.