SAFEs v Convertible Notes – What are the Differences?
tl;dr – Convertible Notes and true debt instruments with interest and maturity dates while SAFEs are generally more founder friendly with the exception of Pro Rata rights. It’s important to understand what market in your area is when deciding which to use in fundraising. You learned of the standard way [...]
The dangers of selling equity to friends and family for early stage startups
You just received an email from your rich uncle who normally invests in real estate. He is excited about your company and wants to put in $25k for 0.1% of your company, your first outside capital. That gives you a pre-money valuation of $25M! So everything is great, right? Cue [...]
What is the forgotten founder problem? How to avoid or fix this issue.
tl:dr - A forgotten founder is someone who initially works on the product of a company, never assigns his IP to the company, and re-appears when the company is looking at exit event. The best way to handle this issue is by avoiding it by having them sign an IP [...]
SAFEs v Convertible Notes – What are the Differences?
tl;dr – Convertible Notes and true debt instruments with interest and maturity dates while SAFEs are generally more founder friendly with the exception of Pro Rata rights. It’s important to understand what market in your area is when deciding which to use in fundraising. You learned of the standard way [...]
The dangers of selling equity to friends and family for early stage startups
You just received an email from your rich uncle who normally invests in real estate. He is excited about your company and wants to put in $25k for 0.1% of your company, your first outside capital. That gives you a pre-money valuation of $25M! So everything is great, right? Cue [...]
What is the forgotten founder problem? How to avoid or fix this issue.
tl:dr - A forgotten founder is someone who initially works on the product of a company, never assigns his IP to the company, and re-appears when the company is looking at exit event. The best way to handle this issue is by avoiding it by having them sign an IP [...]