Startup financing 101: What’s a valuation cap? SAFEs and convertible notes explained

https://www.youtube.com/watch?v=fcrsoartpFU

Oakland News Now

Startup financing 101: What’s a valuation cap? SAFEs and convertible notes explained

– video made by the YouTube channel with the logo in the video’s upper left hand corner. OaklandNewsNow.com is the original blog post for this type of video-blog content.

✅ Model your SAFE funding round with our free calculator: http://safes.carta.com

✅ Watch episode 1, the difference between SAFEs and Convertible Notes: https://youtu.be/PtTDmeU-Kok

✅ Watch episode 3, the difference between a pre-money and post-money SAFEs: https://youtu.be/Mj0LxtaLQIk

✅ Automate your cap table with Carta: https://www.carta.com

✅ Everything you need to know about fundraising with SAFEs: https://ift.tt/3pwIu9X

Startup funding explained: If you’re raising seed financing for your startup, chances are you’re fundraising on a convertible instrument like a SAFE (Simple Agreement for Future Equity) or convertible note. But what are all these terms you need to know, like “valuation cap,” “conversion discount,” and “most favored nation clause?”

In this episode of NO FEAR EQUITY, we break down the basics of raising seed startup funding by discussing the SAFE and convertible note terms and phrases you need to know. Learn what valuation caps are, how conversion discounts work, and what to expect when a “most favored nation” clause shows up in your contract. In the next episode, we’ll discuss the differences between a pre-money SAFE and post-money SAFE.

NO FEAR EQUITY is a presentation of Carta, the #1 equity management platform for startups and equity-funded companies. We have plenty of free resources to help startup founders plan their fundraise, manage their cap table, and prepare to issue equity to investors and employees. Check out some of our resources here:

? Carta’s Series A pitch deck: https://ift.tt/2ZyZXyZ
? Carta’s Series D pitch deck: https://ift.tt/2UPGLKM
? Our free cap table template: https://ift.tt/2rdUDVx
? Our free board deck template: https://ift.tt/3hVIGJ1
? What to look for in a 409A report: https://ift.tt/3EbPEEQ

DISCLOSURE: This communication contains general information only and eShares, Inc. dba Carta, Inc. (“Carta”) is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This communication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.

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Note from Zennie62Media and OaklandNewsNow.com : this video-blog post demonstrates the full and live operation of the latest updated version of an experimental Zennie62Media , Inc. mobile media video-blogging system network that was launched June 2018. This is a major part of Zennie62Media , Inc.’s new and innovative approach to the production of news media. What we call “The Third Wave of Media”. The uploaded video is from a YouTube channel. When the video is “liked” by Zennie62 YouTube, then it is automatically uploaded to and formatted automatically at the Oakland News Now site and Zennie62-created and owned social media pages. The overall objective here, on top of our is smartphone-enabled, real-time, on the scene reporting of news, interviews, observations, and happenings anywhere in the World and within seconds and not hours – is the use of the existing YouTube social graph on any subject in the World. Now, news is reported with a smartphone and also by promoting current content on YouTube: no heavy and expensive cameras or even a laptop are necessary, or having a camera crew to shoot what is already on YouTube. The secondary objective is faster, and very inexpensive media content news production and distribution. We have found there is a disconnect between post length and time to product and revenue generated. With this, the problem is far less, though by no means solved. Zennie62Media is constantly working to improve the system network coding and seeks interested content and media technology partners.