The mechanics of funding are rife with legal and insider terminology. Parsing it all is daunting. But if you are a founder with VC money in the bank, it’s imperative you know just what you’re getting into, and a glossary of definitions from a textbook just isn’t going to get you there.
In our series, “A Startup Takes Flight,” we walk you through how the latest innovator in drone meal delivery, Internet of Wings, goes through the process of raising money from VCs, determining valuations, and the results of successfully achieving an exit.
The series also goes through how VCs protect themselves with measures such as anti-dilution and pro rata clauses.
If you are looking to found a VC-backed startup, but remain modest in your knowledge in how it all actually works, read “A Startup Takes Flight.”
What Happens When You Sell Your Startup?
It is now time to get our fictitious investors a liquidity event from our little drone startup. Let’s sell our company!
Antidilution: The Other Way VCs Take More Of Your Startup’s Equity
Startup funding may seem like a cut-and-dry affair. Money goes into a startup in exchange for shares in the startup. Easy enough, right? Not so much. There are plenty of complex terms, clauses, provisions, and other conditions written into investment agreements. So in this series, “A Startup Takes Flight,” we’re exploring how some of the…
How Pro Rata Works In Venture Capital Deals
To the uninitiated, startup fundraising can be confusing. And even some of the resources designed to be approachable for the newcomer often raise more questions than they answer. So we’ve launched a series called “A Startup Takes Flight” to simply explain the dynamics of fundraising and deal terms. Follow Crunchbase News on Twitter & Facebook…
Cap Tables, Share Structures, Valuations, Oh My! A Case Study of Early-Stage Funding
For many entrepreneurs, especially first-time founders, raising outside capital can be daunting. Between all of the new vocabulary – like “term sheets,” “capitalization tables,” “pro rata,” and different valuation metrics – and the very real legal implications of the agreements being signed, it’s easy to get overwhelmed. Follow Crunchbase News on Twitter & Facebook When…