Financing New Ventures: Conquer Fundraising in 15 Mins: Get the Capital You Need to Grow Your Business by Young Michael

Author:Young, Michael [Young, Michael]
Language: eng
Format: epub
Publisher: Unknown
Published: 2015-01-19T16:00:00+00:00

Chapter 5: Venture Capitalists and Series A Funding

Context: who are the VCs, why do they invest, and how does a venture capital firm work?

Liquidation preference

Protecting investors when things go bad

When company is liquidated, they have right to first take their money out of the table

Typically 1x, but sometimes 2x or 3x

Investors get preferred shares

Gives protection for investors

Using convertible notes to invest

Angel investors want to be rewarded for taking early risk

But don’t know how to value the company

Convertible notes are easy to invest money

IP of company as collateral

20% discount off the venture investor’s price

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.