Austin Startup

NOVEMBER 6, 2017

Many angel investors, and also strategic investors, are comfortable investing in LLCs, particularly under a convertible security structure that doesn’t immediately result in equity holdings. But at this point it has more to do with inertia and a desire to minimize their own legal bills than any real legal issue.

Delaware 48

Delaware LLC Startup Silicon Valley 48

Gust

SEPTEMBER 5, 2012

The new form of convertible security or “convertible equity” is essentially a convertible note containing most of the usual terms — except it’s been stripped of the features that would make it a loan. A convertible note financing is not a loan in the conventional sense.

Finance 134

Finance Convertible Security Equity Seed Stage 134

Hippoland

MAY 16, 2018

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) Just in general, given how cheap it is to start a company and how few pre-seed investors there are, I think it makes sense to bootstrap to some level of revenue traction before fundraising.

Seed Stage 48

Seed Stage Valuation Equity Convertible Security 48

Hippoland

MAY 16, 2018

I put “equity” in quotes because I include convertible notes and convertible securities in this category.) Just in general, given how cheap it is to start a company and how few pre-seed investors there are, I think it makes sense to bootstrap to some level of revenue traction before fundraising.

Seed Stage 48

Seed Stage Valuation Equity Convertible Security 48

Hippoland

JANUARY 23, 2018

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. The market had definitely shifted. Cons: Slow.

Early Stage 48

Early Stage Convertible Security Seed Stage SEC 48

Hippoland

JANUARY 23, 2018

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. The market had definitely shifted. Cons: Slow.

Early Stage 48

Early Stage Convertible Security Seed Stage SEC 48

Hippoland

AUGUST 31, 2018

And companies typically have $2m-$3m revenue runrate at this point. 4) Lastly, with the definition of “seed” expanding, more fundraising is done on convertible notes or convertible securities. I’m now seeing more rounds get done with convertible notes and securities for much longer.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90