Raising Capital & Strategy—Getting Out of the Details
Being in the details is great for some jobs. For CEOs, it can be a death sentence. We're going to help keep you alive by taking you above the minutia for a flight in a unique aircraft. Since I became certified to fly gyrocopters last month, I have a metaphor that I like to use when I’m working with clients. To do this, I take my clients “up” in a metaphorical gyrocopter and “fly” them above the details. Ready to take a trip with our founder? Process
Last week, our founder wa
Raising Capital & Strategy—Fail: Focusing on the Details
In prior posts, we discussed that you need an outline business plan, strategic financial planning model, and a company presentation to raise capital. For each of these pieces, being too “in the details” or too “in the clouds” can cause your raise and company to fail. This week we'll address being too in the details. When looking at how people work, have you ever had this thought about one of your managers? I’m tired of being micromanaged! She’s on my ass every day about the d
Raising Capital in the Early Stages: The KISS—Convertible Debt or Equity—Part Two
In part one, we covered the basics of a Keep It Simple Security (KISS). This week, we go into greater detail about the conversion of both the debt and equity type KISS, plus the pros and cons of each. Conversion The debt and equity KISS have more complexity at conversion than basic convertible debt or a Simple Agreement for Future Equity (SAFE). Here are the three major components of KISS conversion simplified: 1. Both the debt and equity KISS convert to preferred stock when
Raising Capital in the Early Stages: The KISS—Convertible Debt or Equity—Part One
Last week’s post covered raising cash using a SAFE. This week, we’ll cover the KISS or Keep It Simple Security, Part One. KISS Basics The KISS was developed by 500 Startups to allow early-stage companies to raise capital quickly from accredited investors without significant expense. It comes in two versions, a debt type—which accrues interest and has a maturity date—and an equity type, which comes with neither. Both convert into equity, like Convertible Debt (CD) or the SAFE.
Raising Capital in the Early Stages: Convertible Equity—The SAFE
Last week’s post covered raising cash using convertible debt (CD). This week, we’ll cover the SAFE or Simple Agreement for Future Equity. SAFE Basics Developed by Y Combinator in 2013, the SAFE is a relatively simple agreement that can be executed quickly to allow early-stage companies to raise capital. Using a SAFE, investors provide cash in exchange for the right to obtain company stock in the future when a Preferred equity round is raised or when the company gets acquired.
