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Category: Convertible Notes

Colorado startup seed financing structures.

Background reading: The best seed round structure is the one that closes.¬†Should non-SV founders use SAFEs in seed rounds? In terms of how a typical emerging tech company (startup) raises seed capital, there are 3 options that from our experience make up 95+% of rounds: Equity (Preferred Stock), Convertible Notes, and SAFEs (Simple Agreement for Future Equity). If you want a deeper dive into their pluses and minuses, read the above-linked posts. At a high-level, equity (stock) is more complex to negotiate, draft, and close, but has the benefit of greater certainty. Larger rounds tend to be closed as equity.…

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