One of the most significant milestones for founders is raising their first round of institutional capital from outside investors—otherwise known as Series A funding. When you reach this stage, your startup is likely generating steady revenue but it’s probably not
Receiving your first term sheet is a big milestone in your company’s journey. And because it’s one of your final steps in the fundraising process, making sure it doesn’t fall apart at this stage is critical. Outlining the conditions of
Equity awards and stock options, in particular, are linchpins among the recruiting tools relied on by venture-backed companies. Accordingly, companies interested in prioritizing transparency should make efforts to ensure that their employees understand the factors affecting the prospective value of
How do you think about the function of legal? The answer to that question can depend on who you ask. A sales leader might tell you that legal is a checkpoint to lob a deal over the fence and get
This article was originally published on TechCrunch as part of an ongoing series from industry experts, covering hot topics that founders are wrestling with every day as they build their companies. — With Y Combinatorʼs Demo Day taking place at Pier
The proliferation of SAFEs and Convertible Notes (collectively, “Convertible Securities”) the past few years has given rise to a new problem when raising your Series A financing – “party rounds” with a lot of stakeholders who prove difficult to manage.
A typical startup company authorizes one class of Common Stock with simple rights. An example of such rights is that each share of Common Stock is entitled to one vote on all matters subject to stockholder approval. However, as valuations