Articles tagged

Startup Financing Terms

Learn how to understand the key terms used in startup financing documents such as Convertible Notes, YCombinator SAFE agreements, Series Seed term sheets, Series A term sheets, and late stage fundraising term sheets. Prepare yourself for negotiating about key financing and control terms when you go to raise funds from venture capitalists to grow your startup. We cover important concepts for entrepreneurs who plan on raising outside capital, such as valuation caps, discounts, liquidation preferences, dilution, anti-dilution provisions and more.

What Is A No Shop Clause in Startups Deals?

Explore the essentials of no-shop clauses in startup financing, their impact on negotiations, and best practices for startups navigating these agreements.

Preferred Stock: Quick Guide For Startup Founders

Everything a startup founder needs to know about preferred stock in venture capital financings.

Greg Miaskiewiczby Greg Miaskiewicz • 7 min read

Most Favored Nation (MFN) Clause in Startup Investing: What it is and how it works

Learn what the Most Favored Nation clause means in investing, how it is used in startup financing agreements, and why investors like it so much.

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What is a Signature Block in Legal Contracts?

Most people don't pay much attention to the signature block when a contract is signed. Signature blocks and conventions around signature in legal contracts serve an essential function in determining the validity of a contract such as an investor agreement or stock option award.

Stefan Nageyby Stefan Nagey • 2 min read

Priced and Unpriced Financing Rounds: What are the Differences?

The key differences between priced and unpriced rounds and when startups use them for fundraising. Learn about key financing terms like preferred shares, convertible equity, valuations and valuation caps.

Stefan Nageyby Stefan Nagey • 5 min read

How do SAFEs Work?

How YCombinator SAFEs work for startup fundraising. An in-depth look at key terms, like valuation cap, discount, and most-favored nation (MFN) status.

Greg Miaskiewiczby Greg Miaskiewicz • 7 min read

How Do Convertible Notes Work?

An in-depth look at convertible notes and how these financing instruments are used by early stage startups.

Greg Miaskiewiczby Greg Miaskiewicz • 5 min read

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