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The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. “If you’re going to raise $1 million, my advice is to propose a convertible security, because you can get it done quickly and less expensively,” said Schmitz. Convertible Securities.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months).

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What early stage fundraising in 2018 looks like?

Hippoland

It will be hard to raise a pre-seed round through traditional methods If you are raising money through traditional methods (such as with angels / micro VCs / VCs) via a convertible note or convertible security or equity deal, it will be a lot harder to raise pre-seed money in 2018. Cons: Slow. Power is in the hands of investors.

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What early stage fundraising in 2018 looks like?

Hippoland

It will be hard to raise a pre-seed round through traditional methods If you are raising money through traditional methods (such as with angels / micro VCs / VCs) via a convertible note or convertible security or equity deal, it will be a lot harder to raise pre-seed money in 2018. Cons: Slow. Power is in the hands of investors.

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The state of Q2 2018 pre-seed/seed-stage fundraising: Part 1 - crypto version

Hippoland

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. 2) These cryptoinvestors are not buying tokens at the ICO Most cryptoinvestors I know are trying to buy tokens pre-ICO and often in companies who are doing token sales discreetly. They aren’t.

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The state of Q2 2018 pre-seed/seed-stage fundraising: Part 1 - crypto version

Hippoland

Part 2 will be for pre-seed/seed companies raising traditional equity / debt / convertible security rounds. 2) These cryptoinvestors are not buying tokens at the ICO Most cryptoinvestors I know are trying to buy tokens pre-ICO and often in companies who are doing token sales discreetly. They aren’t.

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Seed rounds are dead

Hippoland

Here’s what’s happening in the equity world (from my perspective): 1) Token sales in the crypto-world do affect “equity” raises. (I I put “equity” in quotes because I include convertible notes and convertible securities in this category.) This leads me to point #3. E.g. $200k on $3m.