Browsing Tag

Investment Instruments

6 posts
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Simple Agreement for Future Equity (SAFE): An Overview

SAFEs (Simple Agreements for Future Equity) are popular fundraising tools for early-stage startups, offering a standardized and straightforward way to raise capital. They provide flexibility for founders and low legal costs for investors, making them ideal for pre-revenue or early-revenue businesses.
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Preferred Equity: An Overview

Preferred equity in early-stage financing is discussed in this blog post, covering its advantages for companies and investors, key terms, and a practical example.
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Common Equity: An Overview

Common equity represents ownership in a company and entitles the holder to a share of the profits. This blog post explores the benefits and considerations of common equity for both companies and investors, including the alignment of interests, potential dilution, and unlimited upside.
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Convertible Notes: An Overview

Convertible notes are investor-friendly loans to early-stage companies, offering enhanced upside and downside protection. Key terms include investment amount, maturity date, interest rate, discount, and valuation cap.