You just received a term sheet for a round of preferred equity financing in your company – how exciting! But what do the terms mean, and which ones should you really care about? Your company’s initial rounds of financing set
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Creating a Startup While Employed: Important Things to Consider
After working as an employee for someone else, you want to take the leap and form your own company – great! But, understandably, you may not be ready to quit your day job and lose your steady stream of income.…
What is a Cap for SAFEs and Convertible Notes?
Now that you’ve formed your business and you and your fellow founders are hard at work building your startup, if you are like most burgeoning businesses, at some point you will need an injection of cash to keep the lights…
What Does “Fully Diluted” Mean?
“Fully Diluted” is a phrase often thrown around when discussing a company’s capitalization. But what does it really mean? Understanding your company’s capitalization is critical during any stage of the company’s lifecycle, not only to maintain an intimate understanding of…
What are Blue Sky Laws and How Do They Affect Me?
To succeed as an entrepreneur, there are many laws which you need to be aware of, including “Blue Sky Laws.” In the United States, Blue Sky Laws are the securities laws of the individual states, and they reflect the ways…
Papering a Preferred Equity Venture Deal: an Introduction to the NVCA Deal Docs
As an entrepreneur, you are no stranger to making key decisions for the growth of your business as you secure your team, build out your business plan, and seek funding to scale. It goes without question that one of the…
What Are the Differences Between Founders, Directors, Officers, and Employees?
You need others to help build your business, but as you build your team, it is important to distinguish the different roles in your corporate structure. Are you dealing with co-founders with whom you started the company? How do you…
How to calculate issued and outstanding shares, and why it’s important
You may be thinking to yourself – why do I care about learning how to calculate issued and outstanding shares; I know how many shares I own, isn’t that enough? While knowing how many shares you own is helpful, your…
When Should a Startup Raise Venture Capital?
Cash is king and, as a pre-revenue company, raising venture capital is often a critical step in the success of your business. Even if you have friends and family willing to be your first angel investors, you can’t always count…
Why SUP and Why SUP’s Debt Equity Model (Cap Table) vs. Carta or Captable.io?
People always ask me, “What is SUP?” and “Why is its Debt Equity Model (Cap Table) relevant when I can build my cap table using an online tool?” Here is my answer! In the Beginning – Venture Cap Tables Years…