Ready to raise money or issue equity? Understand how funding rounds, cap tables, and investor agreements actually work, so you can grow without losing control.
We’ve said something similar in a previous article, but it bears repeating: equity is wealth. When building your own company or joining a venture as a co-founder, it is essential to ensure that founder equity is properly documented and formalized. Doing so not only ensures that your hard work
If you’re a founder planning to raise capital from sophisticated investors—such as venture capital firms—you will almost certainly need a company valuation at some point. Startups obtain valuations for different reasons, and one of the most common (and reliable) is a 409A valuation. A 409A valuation is
If you’ve built a successful company, chances are you’ve raised capital from investors—or plan to. In that process, understanding the difference between preferred stock and common stock is essential. These distinctions matter not only when raising money, but also when hiring employees, structuring incentives, and planning for
In high-stakes transactions—such as M&A, equity financings, and IPOs—virtual data rooms (VDRs) are essential. A VDR is a secure digital repository used to store and share sensitive company documents during due diligence. Think of it as the digital version of a confidential folder founders provide to
When founders think about fundraising compliance, most focus on the SEC — accredited investors, Reg D exemptions, Form D filings, and federal securities law. But there’s another layer of regulation that often catches first-time entrepreneurs off guard: state securities laws, commonly known as “blue sky laws.” Even if your offering
Simple Agreements for Future Equity ("SAFEs") and Convertible Notes ("Notes") are popular tools for fundraising, especially at the earlier stages. However, without careful planning, both tools can bite founders hard, especially during a raise. Let's say you're doing a series A, and