Convertible loan agreements involve a multitude of terms, which facilitate their execution. However, these terms make convertible notes complex documents to deal with. We discussed in several articles the main terms and practices associated with convertible notes. The first template that complies with EU securities legislation In our experience with convertible debt, we discovered there is…
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Do you prefer to listen to podcasts? Listen to the audio here Any metric of VC activity has slowed down over the past 12 months – anything from the number of deals to the average capital investment and even valuations. This was triggered in 2015, and had a waterfall effect on VC activity and caused a change…
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Do you prefer podcasts? Listen to the audio here Unit economics are basically a summary of your company’s current performance. They are intrinsically specific to the business model you have. However, there are some common patterns. Nowadays the key to building a sustainable business is recurring revenues. I am not explicitly saying you should build a…
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Why does your accounting show different figures from your actual cash flow? How long can your startup survive on the cash at hand? How much capital should you raise? In this article, we’ll answer all these questions. But first, some definitions: Burn Rate: Term used by venture/angel funded companies to refer to their monthly…
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Do you prefer podcasts? Listen to the audio here A lot of trust is involved in investing in early-stage companies. This trust is directed mainly towards you and your co-founders. If you are a famous founder – you can raise capital even with a back-on-the-envelope business plan, because you have a high credibility in the market.…
read morePreparing employee stock option agreements is a complex and lengthy process. This is why we decided to share our own and open source it for the entrepreneurial community. We have worked on it at length to consider financial, tax, and legal implications and make an unbiased and fair contract that will reward the employee, protect the company, and…
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In our previous post about how much equity to offer to investors at different funding rounds, we looked at the equity boundaries that a founder can offer at the different stages of development of a startup. However, there is also the case of rewarding early employees with stock options. In our experience, there is no one-size-fits-all…
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Do you prefer podcasts? Listen to the audio here In our post about the right timing for fundraising we mentioned that, during “jogging”, founders should build up a list so that they can efficiently reach out to investors during the fundraising “sprint”. The question now is: How to build up this list? How to identify right potential…
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Fundraising is an activity that requires considerable time and effort and, as founders, we often wonder when is the right time to commit to it. Without proper planning and timing, fundraising can even become detrimental as it diverts a significant amount of attention from the business. Truth is, startups are always fundraising. However, in different…
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Pitch decks are a set of slides that clearly describe and define your value proposition, your business case and why investors should give you their attention. While developing our pitch decks and sales presentations, we gathered experience in creating them and collected knowledge on the fundamental elements that investors want to be included in order to consider your…
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