Term Sheets & Valuations: A Line by Line Look at the Intricacies of Term Sheets & Valutions (Bigwig Briefs)
Alex Wilmerdingamazon.com
Term Sheets & Valuations: A Line by Line Look at the Intricacies of Term Sheets & Valutions (Bigwig Briefs)
Simple Agreement for Future Equity (SAFE)
A SAFE gives investors the rights to purchase stock in a future equity round, often with a specific cap and/or discount. No specific price per share is determined at the time of the initial investment.
They’re a simple and fast way to get early investments into a company. The SAFE was originally i
... See moreTraditional Fund
Traditional funds typically do a “big bang” fundraise and begin deploying capital after the First Close. Once the fund is officially closed, they’re unable to accept new LPs.
That said, it’s not uncommon for fund managers to leave their fund “open” for several months while deploying and raising additional capital.
Ro
... See moreTo attract seed stage investors, consider a convertible debt deal with two additional features: a reasonable time horizon on an equity financing and a forced conversion if that horizon isn’t met, as well as a floor, not a ceiling, on the conversion valuation.