Dilution Explained: A Founder's Walkthrough
Every time your startup issues new shares, your slice of the company gets smaller. That is dilution, and it is a normal part of raising money and hiring. The …
Category
Fundraising
Pitch decks, term sheets, SAFEs and valuations, explained from both the founder and investor side.
Government-Backed Loans for Startups in the UK and US
Not every startup needs investors. If your business can carry a regular repayment, a government-backed loan can give you capital without handing over equity. …
Participating vs Non-Participating Preferred Stock
Two words on a term sheet, "participating" or "non-participating," can move millions of dollars between investors and founders when a company is sold. This …
Board Observer Rights Explained
An investor asks for a board observer seat, and it sounds harmless: they just want to listen in. In practice, an observer sees almost everything your board …
How to Negotiate a Term Sheet Without Losing the Deal
A term sheet in your inbox is exciting, and a little scary. You want better terms, but you do not want to push so hard that the investor walks away. This guide …
SAFE Side Letters Explained: Pro Rata and MFN
The SAFE itself is often a short, standard document. The surprises tend to live next to it, in a side letter that gives one investor extra rights. Pro rata …
How to Use a Data Room During Fundraising
A data room is where investor interest turns into investor confidence. When a fund says "we'd like to dig in," a well-organized data room lets them find answers …