In the world of early-stage fundraising, the allure of the Simple Agreement for Future Equity, or SAFE, often seems like a no-brainer choice for entrepreneurs. Designed as a founder-friendly vessel to sail the choppy waters of early-stage funding, a SAFE agreement promises a straightforward path to securing capital without the immediate dilution of ownership or valuation discussions, allowing founders to focus on what they do best: building a company.
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Your pitch deck should seek to tell a compelling story, build trust, and avoid common pitfalls. Perfect your fundraising strategy by understanding what to include and what to avoid in your presentation to investors. Check out this Perkins Coie LLP StartupPercolator blog post. #Startups #StartupFunding #VentureCapital #InvestorPitch #StartupPercolator
Getting Ready to Raise Series Pt. 3: Investor Pitch Decks: Dos and Don'ts | StartupPercolator | Perkins Coie LLP
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Concise and actionable pitch deck tips
Your pitch deck should seek to tell a compelling story, build trust, and avoid common pitfalls. Perfect your fundraising strategy by understanding what to include and what to avoid in your presentation to investors. Check out this Perkins Coie LLP StartupPercolator blog post. #Startups #StartupFunding #VentureCapital #InvestorPitch #StartupPercolator
Getting Ready to Raise Series Pt. 3: Investor Pitch Decks: Dos and Don'ts | StartupPercolator | Perkins Coie LLP
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Securing funding is exciting, but don't let the thrill of a term sheet blind you to its implications. I've seen founders inadvertently sign away more than they intended because they didn't fully understand the terms. Every clause in a funding agreement can impact your control, your future fundraising options, and even your exit strategies. Liquidation preferences, anti-dilution provisions, and board seat allocations might seem standard, but their long-term effects can vary widely. Never sign a term sheet without having it reviewed by a lawyer experienced in startup funding or someone who has gone through the process before. They can help you avoid agreeing to anything that could handicap your startup's future. Don't rush into an agreement you might regret later.
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Great advice here and a hard lesson learned! PLEASE document your agreements with advisors, 1099 contractors and employees. And protect yourself and your business - The most important elements are that you own any IP lock, stock and barrel - no ifs ands or buts on this! Further, make the termination of the agreement relatively easy with simple notice, not specific cause.
50 hours of work without a contract can cost you your startup and all your savings. Case in point: As a startup founder, formalizing every contribution to your venture is non-negotiable. A founder let a school classmate contribute to their startup idea without a formal agreement, thinking it was too early to agree on equity. Six months later, the classmate demanded half of the company for just 50 hours of work. The fallout? A legal battle costing the founder his savings in personal legal fees—and it's just the beginning. Meanwhile, fundraising is frozen as investors shy away from the dispute. This financial drain and stalled progress could have been avoided with a simple consulting or advisor agreement, complete with equity subject to a one-year vesting cliff. This ensures that early departures don't lead to equity disputes. And if more shares are justified later, they can be granted additionally. Don't mistake goodwill for a safety net. Secure your startup's future—download our advisor agreement template now; link in the comments. #startupfounder #startuplawyer
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Day 8: Understanding Cap Tables – Structuring Ownership for Long-Term Success Welcome back to our 15-Day Series on Fundraising Simplified! Today, we’re tackling a critical yet often misunderstood aspect of fundraising: Cap Tables. Getting your cap table right is essential for managing ownership, preparing for funding rounds, and avoiding future conflicts. What is a Cap Table? A Capitalization Table (Cap Table) is a breakdown of your startup’s ownership structure. It details who owns what—founders, employees, and investors—and how much equity is allocated to each. Why Cap Tables Matter Equity Transparency A clear cap table avoids confusion or disputes by documenting ownership percentages. Investor Readiness A well-maintained cap table shows professionalism and makes it easy for investors to understand their stake. Strategic Planning Managing dilution and understanding how equity changes with each funding round are key to maintaining control. Common Mistakes to Avoid Over-allocating Equity Early On: Keep room for future hires and rounds. Neglecting Updates: Regularly update your cap table to reflect changes in ownership. Miscommunication: Ensure all stakeholders understand their shares and rights. Key Takeaway Your cap table isn’t just a document—it’s a tool to manage growth, attract investors, and protect founder control. Keep it clean, clear, and current to stay funding-ready. Stay tuned for Day 9, where we’ll dive into another essential piece of the fundraising puzzle! #FundraisingTips #CapTableManagement #Entrepreneurship #StartupFunding #InvestorReadiness #StartupGrowth #Day8of15
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'You miss 100% of the shots you don’t take.' – Wayne Gretzky" Are you at the start of your business journey or are you thinking about launching a new venture? At Marshall & Co, we specialise in business planning and advice right from the beginning. Partnering with an accountant from day one offers many benefits: - We can assist you in navigating startup finances and budgeting with expert advice, ensuring compliance with regulatory requirements to avoid penalties. - The team will also advise on how to optimise tax strategies to maximise savings and cash flow. Gain peace of mind knowing your financial matters are in capable hands, allowing you to focus on building and growing your business. #startup #businessowner #smallbusiness
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Raising money is critical to a startup's success. It is essential to fuel growth, build infrastructure, attract talent, mitigate risks, access networks, scale marketing and sales efforts, and achieve milestones. A pitch deck is one of the most important documents a founder can craft in their career. By now, certain rules of what should and shouldn't be in a pitch deck have been established, shaped by decades of venture market history. Here are a few recommendations on what to avoid to make a successful presentation: https://lnkd.in/eK7rRWRg
Avoid These 9 Mistakes When Asking For Money | Entrepreneur
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🔍 Understanding the Term Sheet 🔍 For those navigating the startup world, the term sheet is a critical document that you’ll encounter during fundraising. It’s a non-binding agreement that outlines the key terms and conditions of a proposed investment. Here are some essential elements: 1. Valuation: Determines our company’s worth and the investor’s ownership percentage. 2. Investment Amount: The total funds being invested. 3. Type of Security: Specifies the equity or convertible security offered, such as preferred stock. 4. Board Composition: Allocates board seats between investors and founders. 5. Liquidation Preference: Outlines the payout order in case of a liquidation event. 6. Voting Rights: Details the voting privileges of investors. 7. Anti-Dilution Provisions: Protects investors from dilution during future funding rounds. 8. Founder Vesting: Ensures founders remain committed by vesting their equity over time. 9. Right of First Refusal: Allows investors to participate in future funding rounds. 10. Drag-Along Rights: Enables majority shareholders to compel minority shareholders to join in a sale. While it’s not legally binding, a term sheet sets the stage for the final agreements and aligns expectations between startups and investors. #Startups #Investment #Fundraising #Entrepreneurship #BusinessGrowth
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Raising capital takes preparation... and knowing where to start as a founder can be overwhelming. In this article, we take a look at - Understanding your funding needs - Developing a solid business plan - Strengthening your financial health - Legal readiness - Creating a compelling pitch - Networking and building relationships - Examining different funding options - and Preparing for due diligence Read the full article here to learn : https://stbl.pro/prepare #CapitalRaise #Startup #Founder #BusinessOwner
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𝙒𝙝𝙖𝙩’𝙨 𝙩𝙝𝙚 𝙋𝙪𝙧𝙥𝙤𝙨𝙚 𝙤𝙛 𝙖 𝙁𝙪𝙣𝙙𝙧𝙖𝙞𝙨𝙞𝙣𝙜 𝙋𝙞𝙩𝙘𝙝? If you answered “to raise money,” you’re not alone -- that’s the answer most people would give. As a startup advisor, I see a lot of founders pouring time and energy into crafting the perfect pitch, thinking that a scintillating presentation is what unlocks funding. And yes, a strong pitch is critical -- it’s the first impression, the hook, the moment you grab an investor’s attention. 𝘉𝘶𝘵 𝘩𝘦𝘳𝘦’𝘴 𝘵𝘩𝘦 𝘳𝘦𝘢𝘭𝘪𝘵𝘺: 𝘈 𝘨𝘳𝘦𝘢𝘵 𝘱𝘪𝘵𝘤𝘩 𝘥𝘰𝘦𝘴𝘯’𝘵 𝘮𝘢𝘬𝘦 𝘪𝘯𝘷𝘦𝘴𝘵𝘰𝘳𝘴 𝘣𝘳𝘪𝘯𝘨 𝘰𝘶𝘵 𝘵𝘩𝘦𝘪𝘳 𝘤𝘩𝘦𝘤𝘬𝘣𝘰𝘰𝘬𝘴 𝘰𝘯 𝘵𝘩𝘦 𝘴𝘱𝘰𝘵; 𝘪𝘵 𝘫𝘶𝘴𝘵 𝘰𝘱𝘦𝘯𝘴 𝘵𝘩𝘦 𝘥𝘰𝘰𝘳 𝘵𝘰 𝘧𝘶𝘳𝘵𝘩𝘦𝘳 𝘤𝘰𝘯𝘷𝘦𝘳𝘴𝘢𝘵𝘪𝘰𝘯𝘴. A great pitch sets the stage for what comes next: due diligence, follow-up meetings and proving that your company is worth investing in. Ultimately, securing funding is about showing that you’re building a strong, scalable business that solves real problems and has clear traction. Investors look for more than just a good story. They want to see metrics, market understanding and a plan for growth. So, by all means, make your pitch memorable. But remember: the real work of fundraising happens after the pitch. #Fundraising #StartupAdvice #InvestorMindset #Pitching #MomentusLegal
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