Skip to content →

Category: Financing

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.…

Leave a Comment

How Colorado startups are often different from Silicon Valley startups

Background reading: Not Building a Unicorn.  The growth path you intend to take for your company dramatically impacts the legal structure you implement on Day 1. Silicon Valley is known for serving as a magnet for entrepreneurs going after huge, billion-dollar markets, and the entire ecosystem there – including Silicon Valley startup lawyers and firms – has been built around those kinds of companies. In smaller ecosystems like Denver-Boulder, Austin, etc., there are also many firms with great “business lawyers,” but who lack the specialized knowledge of technology and venture capital that startups need. Hiring a small business lawyer to…

Leave a Comment