Tag Archives: Financing.

SAFEs and convertible debt provide startups with fast capital without requiring early valuation negotiations, but they can lead to unexpected dilution (i.e., your ownership percentage decreases as more shares are issued) when it comes time to raise equity funding. Use an equity financing model to map how SAFEs and convertible debt affect future ownership before you launch your next round.

How Much do you Know about a Financing Term Sheet? You are in the early stage of the financing process for your company. A non-disclosure agreement has been executed, and you have started initial discussions with an interested investor, perhaps with a peek behind the curtain to assess the value of your venture. It is…

Raising Capital is Never Easy: Finder Pitfalls If you haven’t run a financing process before, then you likely believe that you should line up all the help that you can get. You may even engage a “finder” to help you raise money. While there are many resources and advisors available to help your company prepare…

Don’t gamble away the success of your company by failing to keep its stock ownership in good shape. Launching a startup certainly has its risks and challenges, but it should not be a roll of the dice at the craps table (or something worse). As an Entrepreneur, you will need to understand your company’s equity ownership and…