Fundraising

Fundraising
SAFE Tax Treatment: A Guide for Startups and SAFE Investors

SAFE Tax Treatment: A Guide for Startups and SAFE Investors

The IRS may treat a Simple Agreement for Future Equity (SAFE) as equity or as an equity derivative for tax purposes. How a SAFE is taxed may affect the investor’s returns, so it’s important to consider this before striking a deal.

Equity 101
What Is a Cap Table? A Guide for Startup Founders

What Is a Cap Table? A Guide for Startup Founders

A capitalization table, or cap table, is a list of a company’s securities. Cap tables show different types of equity and help determine a company’s market value. Read our guide to learn about the different types of cap tables and mistakes to avoid.

Fundraising
What is a Simple Agreement for Future Equity (SAFE)?

What is a Simple Agreement for Future Equity (SAFE)?

A Simple Agreement for Future Equity (SAFE) is an agreement made between an early-stage startup and a VC or angel investor. Investors pay money now and receive shares of company stock later. Read more.

Fundraising
What Is a Convertible Note?

What Is a Convertible Note?

Convertible notes are short-term debt instruments oftentimes used in seed financing and venture capital. Learn more and see if they make sense for you.

Fundraising
Pre-Money SAFE vs. Post-Money SAFE: What’s the Difference?

Pre-Money SAFE vs. Post-Money SAFE: What’s the Difference?

Pre-money SAFEs and post-money SAFEs let investors give money to a startup for the right to future equity. But they are different in key ways. Learn more.

Fundraising
Startup Funding Rounds: What to Know From Seed to IPO

Startup Funding Rounds: What to Know From Seed to IPO

A funding round is an event in which investors give a startup money that enables it to continue growing. Learn the A-B-Cs in our guide for founders.

Fundraising
Modeling Dilution

Modeling Dilution

Planning your company's equity roadmap is important so you don't give away too much of the company in the early days.

Fundraising
What Is a Seed Investment Round?

What Is a Seed Investment Round?

A seed investment round marks the first time a startup raises significant money from outside investors. Here’s what every startup founder should know.

Fundraising
When to Raise Money for a Startup

When to Raise Money for a Startup

Before raising money for your startup, you’ll want to establish solid traction and a business model that will attract potential investors.

Fundraising
Pro Rata Rights: What Startup Founders Need To Know

Pro Rata Rights: What Startup Founders Need To Know

Pro rata rights entitle existing investors to keep their initial ownership percentage in subsequent rounds of financing. Here’s why they matter.

Fundraising
What Is an Accredited Investor?

What Is an Accredited Investor?

An accredited investor is an individual or entity that’s allowed to trade certain unregistered security offerings. Here’s what founders need to know.

Fundraising
What Is a Tear Sheet?

What Is a Tear Sheet?

A tear sheet is a one-page document created by a venture capitalist to summarize the key financial information about a portfolio company.

Equity 101
What Is Contributed Capital?

What Is Contributed Capital?

Contributed capital is the total amount of money and assets shareholders have invested in a company. Here’s where to find it in your balance sheet.

Fundraising
The Startup Founder's Guide to Seed Rounds

The Startup Founder's Guide to Seed Rounds

Everything a startup founder needs to know about fundraising.