fundraising
/fundraising345
A place where founders and investors help each other sharpen their fundraising skills. Trends, advices, feedback... let's help each other, learn and, hopefully, be successful 💰 Important: This channel is NOT a place to advertise your fundraising.
LLC + SAFT is an underexplored deal structure space
Don't try to be fancy with custom legal contracts at the earliest stages of your company. Just use what everybody knows and accepts... and save some money!
Let the people who believe in what you do, invest in you!
PSA: Lately I've been contacted on Telegram by an increasing number of scammers impersonating big / legit crypto investors (mostly Asian ones). I suppose I am not the only one to be contacted, so I thought I'd share a few tips that will save you time and money:
1. Unless you're in the same league as OpenAI or equivalent, these investors will NEVER cold contact you.
2. These investors (or any human being for that matter) NEVER answer immediately when you write them back.
So (1) and (2) should already put your scammer alarm at DEFCON 1 level.
Then, the only thing to do is to ask them to connect with you on Linkedin instead of Telegram because TG is full of scammers. As soon as you tell them that, they will immediately erase everything from the chat and block you, knowing their scam attempt won't work.
Be safe out there!
1. Unless you're in the same league as OpenAI or equivalent, these investors will NEVER cold contact you.
2. These investors (or any human being for that matter) NEVER answer immediately when you write them back.
So (1) and (2) should already put your scammer alarm at DEFCON 1 level.
Then, the only thing to do is to ask them to connect with you on Linkedin instead of Telegram because TG is full of scammers. As soon as you tell them that, they will immediately erase everything from the chat and block you, knowing their scam attempt won't work.
Be safe out there!
"Raise a boat load of money, then bootstrap."
Don't miss that one 👇👀
Today at 12pm ET folks 🔥 👇
If you're raising funds (or planning to!), this is for you!
If you're raising funds (or planning to!), this is for you!
Some good and very true Paul Graham wisdom right there. Don't use bullshit terms. It might be OK with bad investors but will turn off the good ones.
https://twitter.com/paulg/status/1784208391402910126
https://twitter.com/paulg/status/1784208391402910126
Translating @lex-node's comment:
If you have ~100 angels on your cap table, you'll have a hard time explaining that you personally knew all them. Which implies that you most likely solicited most of them, which is forbidden... unless you used a 506(c) exemption.
https://twitter.com/lex_node/status/1783280330616471604
If you have ~100 angels on your cap table, you'll have a hard time explaining that you personally knew all them. Which implies that you most likely solicited most of them, which is forbidden... unless you used a 506(c) exemption.
https://twitter.com/lex_node/status/1783280330616471604
Every year the SEC issues a very informative report on the state of capital formation in the US with very interesting data. If you want to check out the 2023 edition: https://www.sec.gov/files/2023-oasb-annual-report.pdf
Precious stats on Series A and specific terms
A must-read
👇🏻
https://x.com/chrisharveyesq/status/1778835941060399428?s=46&t=Zf46XLDDoRGMHdVPmJ5_tA
A must-read
👇🏻
https://x.com/chrisharveyesq/status/1778835941060399428?s=46&t=Zf46XLDDoRGMHdVPmJ5_tA
New behavior I'm seeing: web3 startups "hiding" that they are web3.
Here are two web3 startups on OpenVC. No mention of NFT, crypto, blockchain... Very unusual.
Better chance to get your deck opened? 🤔
Here are two web3 startups on OpenVC. No mention of NFT, crypto, blockchain... Very unusual.
Better chance to get your deck opened? 🤔
1x liquid. pref. = if you sell your company at a low price, investors first receive their initial investment back before any other shareholders receive distributions.
2x liquid. pref. = investors get twice their initial investment back etc...
Clearly late stage investors have gained negotiation power lately 👀
2x liquid. pref. = investors get twice their initial investment back etc...
Clearly late stage investors have gained negotiation power lately 👀
You don't need need VC money to build:
- A simple e-commerce website
- A simple dating app
- A simple marketplace
- A simple SaaS
If you leverage cloud + low-code + AI, you can realistically bootstrap your MVP to $20k-$100k MRR/mGMV.
No investors needed.
From there, you can raise to scale OR bootstrap some more.
- A simple e-commerce website
- A simple dating app
- A simple marketplace
- A simple SaaS
If you leverage cloud + low-code + AI, you can realistically bootstrap your MVP to $20k-$100k MRR/mGMV.
No investors needed.
From there, you can raise to scale OR bootstrap some more.
"$500k committed"? Really?
If you're raising on SAFE/notes, only money in da bank counts. 💰
If you're raising a priced round, a term sheet is a commit. But committed DOES NOT MEAN secured. Many VCs have called off an investment after giving a term sheet... 💀
And Verbal Commits? They are 💩.
If you're raising on SAFE/notes, only money in da bank counts. 💰
If you're raising a priced round, a term sheet is a commit. But committed DOES NOT MEAN secured. Many VCs have called off an investment after giving a term sheet... 💀
And Verbal Commits? They are 💩.
Showing the relationship between (a) round size, (b) dilution, and (c) valuation.
Still WIP. Wdyt?
Still WIP. Wdyt?
Learn about token warrants and current market practices 👇 https://warpcast.com/ocosme.eth/0xc460f23e
If you're fundraising, you have a new ally 💪
Investment frames allow you to advertise your fundraising to the whole farcaster community!
https://warpcast.com/thibauld/0xd821291d
Investment frames allow you to advertise your fundraising to the whole farcaster community!
https://warpcast.com/thibauld/0xd821291d
A very important thread on Liquid Pref (participating vs. non-participating) 📈
If you’re or will be raising capital, understanding these terms is crucial!
Dive in to know more.
👇🏻
https://x.com/chrisharveyesq/status/1767597253081141603?s=46&t=Zf46XLDDoRGMHdVPmJ5_tA
If you’re or will be raising capital, understanding these terms is crucial!
Dive in to know more.
👇🏻
https://x.com/chrisharveyesq/status/1767597253081141603?s=46&t=Zf46XLDDoRGMHdVPmJ5_tA
Don't get into that mess.
Make sure founders retain LOTS of equity in the first rounds!
https://techcrunch.com/2024/03/04/poison-pill-cap-table/
Make sure founders retain LOTS of equity in the first rounds!
https://techcrunch.com/2024/03/04/poison-pill-cap-table/