What vehicle should startups use for seed stage fundraising?

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Why do you recommend Series Seed?

Why do you not recommend Series Seed?

Equity rounds result in an investor being issued stock in exchange for money at a given valuation. In a nutshell, the investors will agree to a sing...

Transparency

The series seed documents are standardized and publicly available, so there are no hidden terms to bite either the investors or the founders.Equity d...

Simplicity

From SeriesSeed.com:The Series Seed Documents are only 30 pages in the aggregate so that an entrepreneur can read and understand them without devoti...

No cons added yet

Why do you recommend Convertible note?

Why do you not recommend Convertible note?

Convertible notes are a form of debt that converts into equity given a certain trigger, usually a second round of financing.

Does not give up control to investors

In a typical convertible note deal investors do not gain any control over the company. There are usually no control provisions or board seats attach...

Very cheap

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Legal fees for convertible notes are usually very cheap and can be done for under $5,000.

Convertible Notes Also Can Have Multiple Liquidation Preferences

The advantage of variable pricing comes at the cost of multiple liquidation preferences. Mark Suster points out the problems with convertible notes a...

2

Why do you recommend Convertible Equity?

Why do you not recommend Convertible Equity?

Convertible equity is a form of early-stage bridge funding that allows a startup to sell to investors a form of equity security that in many ways res...

No Complex Interest Terms

With convertible equity there is no interest paid on the round. This saves the entrepreneur equity and simplifies future fundraising.The lack of com...

Helps Investors Gain Tax Benefits

Convertible equity financings will help Angel investors reap tax benefits through capital gains discounts.

No cons added yet

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