article thumbnail

A Founder's Guide to Notes & SAFEs: Caps, Discounts & More

Dream It

In this Dreamit Dose, Steve Barsh, Managing Partner at Dreamit, gives you his breakdown and tells you what issues to avoid on these early-stage financing instruments. You’ll learn 6 key points to be prepared and ready the next time you’re structuring a convertible note or SAFE financing. You offer a note or SAFE with a 15-20% discount.

founder 397
article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. As with so many subjects in law and finance, mastering the jargon is half the battle. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Trends in Seed Stage Funding for Entrepreneurs

Gust

Here are the trends in venture capital financings from 2006 through 2010 – the number of seed stage deals funded and total investment by region in millions of dollars. . Then, I looked at angel investment in the US over the past five years, as reported by the Center for Venture Research , in billions of dollars.

article thumbnail

How Much Due Diligence Does An Angel Really Need To Do?

Paul G. Silva

As I’ve posted before, angel investing is risky. A 2007 study found that angel investments in which at least 20 hours of due diligence was done were five times more likely to have a positive return than investments made with less due diligence time. Every angel will personalize the process for their own needs.

article thumbnail

Startup Investing: The New Trend in Alternative Assets

Onevest

By definition Angel Investors are individual investors. But the data shows a rapidly growing trend in accredited investors investing together. This is something that we have experience at 1000 Angels , the private investor network that connects startups with investors. By Tim Hoghten.

investing 116
article thumbnail

Both sides must be fair in a term sheet negotiation.

Berkonomics

Just a few of these terms include vesting, corporate structure, governance principles, financing strategy, valuation and exit strategy. Each one of these terms includes aspects of fairness, ethics, law, business, entrepreneurship, psychology and investing. Email readers, continue here.]

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part III

Gust

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. It’s worth pausing on the definition of the phrase “at the noteholders’ option.”

financing 107