Characterized by voting rights, like electing company directors, common stock is just what it is – the most basic form of stock issued by a company. Common stockholders do not receive a priority claim over dividends or distribution of company … Continue reading
Debt vs. Equity
Preferred stock is a financial instrument used to help raise funds in the private market. Typically, preferred stockholders receive a priority claim over dividends and distribution of company assets in the event of liquidation. Some investors may favor the priority … Continue reading
When choosing to make investments, it can be easy to follow the crowd and make investments based off what other investors are doing. If others are investing in this company, it has to be a good investment? However; not everyone’s … Continue reading
Convertible notes are financial instruments used to raise funds in the private market and have some overlap with properties of equity and debt. In this blog, we will introduce them and cover specific considerations investors should be aware of. Convertible … Continue reading
When startups decide to raise capital, they are often faced with the decision of offering debt or equity to their investors. In this blog, we will cover the basics of what debt vs. equity financing are, the potential risks and … Continue reading
From early-stage startups trying to make it to their Series A to late-stage companies gearing up to go public, bridge rounds are a common occurrence in the startup world. Continue reading
For many startups, the long-established method of raising the necessary funds to get their business to the next level can be a long and winding path. From conducting research, to pitching to investors, to negotiating equity valuation and potentially adjusting … Continue reading
In our last blog post, we reviewed what convertible notes are, their key features, when, and why they’re used. We also briefly touched on the crowd note as a modified version of a convertible note that was designed specifically for … Continue reading
We often receive questions from our investors about convertible notes – what they are, how they work, and why they’re used. Here’s a quick run-down of what you should know about the convertible note funding structure, as well as how … Continue reading
Turning your startup into a successful company without taking outside capital is a daunting task; but it is possible, if you’ve got the time, dedication, and resourcefulness to make it happen. Many successful startups have raised a significant amount of … Continue reading
