Alejandro Cremades’ Post

Equity Fundraising Basics for Founders: Understanding equity fundraising is crucial for early-stage startups. Here's a breakdown of the key concepts: 1) Convertible Notes: These are short-term debts that convert to equity during future financing rounds, allowing you to defer the valuation decision until later. 2) Valuation Cap: Protects early investors by setting a maximum price for conversion, ensuring they get a better deal if the company’s value skyrockets. 3) Liquidation Preference: Investors typically have a 1x liquidation preference, meaning they get their investment back first in the event of a sale or liquidation. 4) Equity Rounds: Seed rounds often involve giving up 10-25% of the company. Plan to raise enough funds to cover 12-18 months of operations. ----- Follow All Chance to learn from more innovative insights.

Seed Funding Your Startup: Getting your first round of funding is crucial for scaling. Here’s a breakdown of the most common methods: 1) Convertible Notes: A quick and inexpensive way to raise funds without needing to set a company valuation upfront. 2) Series Seed Preferred Stock: Ideal for larger rounds with more defined investor rights, but it involves negotiating a valuation. 3) Bootstrapping: Retain control and avoid dilution by using personal funds or revenue—but ensure personal and business finances remain separate. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

https://lnkd.in/epFgH79T You’ve probably read tons of articles about the different rounds of VC funding and all the associated terms, but how often do you come across something that really breaks down the numbers? Ever wondered how to keep track of your startup’s equity as you grow? Dive into our hands-on guide to cap tables, where I break down everything from your first seed round to that exciting exit moment.  By walking you through various scenarios and terms with comprehensive examples and visual aids, I offer a solid foundation for managing equity financing in startups. While real-world cap tables can be intricate, this primer ensures fair ownership and proceeds distribution, helping you maintain investor confidence and support your startup’s long-term growth.Let’s get your cap table game on point!

Demystifying Startup Valuation: Valuing an early-stage startup can be complex, but it's crucial for raising capital. Here’s what to keep in mind: 1) Equity Dilution: Understand how raising funds affects your ownership and control. 2) Pre-Money & Post-Money Valuation: Know the difference and how it impacts investor negotiations. 3) Valuation Methods: Use market comparisons, the VC method, or risk reduction models to arrive at a realistic valuation. 4) Wealth vs Control: Accept that dilution can increase your company’s value and your wealth over time. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

Women's Equity Lab made this course available for their Angel Investors and I didn’t quite know what to expect when I signed up to take it earlier this year. Would it be a pre-recorded webinar? Would it be live and filled with awkward moments of a group of strangers staring blankly at each other- Would I be doomed to zone out? Would everyone’s cameras be off? How would I stay awake and alert this late on the Atlantic time zone to really comprehend the material. Well, I have to say I was more than pleasantly surprised by the format, course material, and engagement driven by rebel class’ founder Brooke Harley who is actually the instructor for this particular class. Our cohort shared laughs, honest discussions, resources, experiences and excitement. What Brooke has crafted is a learning environment that drives a very interesting, practical and effective approach to teaching and learning. Take away resources and collateral you can put into practice right away - tools to help you assess during due diligence, calculate equity value, and more useful for real life! The model of pay once repeat forever is fantastic because, adult learning, I will be taking it again to ensure I absorb as much learning as I can. I would highly recommend for anyone already involved in angel investing, investor curious or those who are in any adjacent segment of industry. #AdultLearning #ContinuingEducation #AngelInvesting #StartUps #WomensEquity #AtlanticCanada

Being prepared is the best way to present yourself 👌 Here are some useful resources for all #startupper 🚀 #startup #funding #vc #pitch #founder

Top 10 fundraising resources for startup founders: 1. The essentials of a killer pitch deck by Hustle Fund: https://lnkd.in/drHRWqm8 3. How to run your first meeting with a VC: https://lnkd.in/dXwpPR94 4. How to pitch to investors by Product Market Fit: https://lnkd.in/d5NpN8yC 5. 7 Rejections by Brian Chesky: https://lnkd.in/dRmJbMbM 6. Pitch the way VCs think by Khosla Ventures: https://lnkd.in/d8BN8yXT 7. Creandum's seed Deck Template: https://lnkd.in/d2MM7txc 8. Linkedin's Series B Pitch Deck: https://lnkd.in/d_3iX2xs 9. Who makes the decision at a VC firm and how the decision gets made by Mark Suster: https://lnkd.in/dGRrV2r6 10. 20 Startup investors lists: https://lnkd.in/dUfTRwiv

💡 𝐓𝐨𝐩 10 𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐑𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐟𝐨𝐫 𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐅𝐨𝐮𝐧𝐝𝐞𝐫𝐬 1. Essentials of a Killer Pitch Deck by Hustle Fund 2. How to Run Your First Meeting with a VC 3. How to Pitch to Investors by Product Market Fit 4. 7 Rejections by Brian Chesky 5. Pitch the Way VCs Think by Khosla Ventures 6. Creandum’s Seed Deck Template 7. LinkedIn’s Series B Pitch Deck 8. VC Decision-Making by Mark Suster 9. 20 Startup Investors Lists #Fundraising #Startups #PitchDeck #VC

Top 10 fundraising resources for startup founders: 1. The essentials of a killer pitch deck by Hustle Fund: https://lnkd.in/drHRWqm8 3. How to run your first meeting with a VC: https://lnkd.in/dXwpPR94 4. How to pitch to investors by Product Market Fit: https://lnkd.in/d5NpN8yC 5. 7 Rejections by Brian Chesky: https://lnkd.in/dRmJbMbM 6. Pitch the way VCs think by Khosla Ventures: https://lnkd.in/d8BN8yXT 7. Creandum's seed Deck Template: https://lnkd.in/d2MM7txc 8. Linkedin's Series B Pitch Deck: https://lnkd.in/d_3iX2xs 9. Who makes the decision at a VC firm and how the decision gets made by Mark Suster: https://lnkd.in/dGRrV2r6 10. 20 Startup investors lists: https://lnkd.in/dUfTRwiv

Folks - join us next week for one of last angel investing live classes of the year! This is $99 - and we will get you 10 years ahead on the mechanics of venture finance - so that you can invest directly into the startups you really believe in, or consult to them for equity. Course outline and sign up here: https://lnkd.in/gEMmtQiK