Convertible Notes, Equity and Startup Funding Explained
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 Published On Premiered Jan 26, 2021

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#slidebean #startups #fundraising #equity

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If you're starting your first company, understanding stock, preferred stock, options, convertible notes, and other fundraising instruments can be truly overwhelming. We didn't find a single video that covered this, well, actually we did. It was our video. The thing is there were mistakes on one of the many charts we added and we got a bit tired of people correcting that same mistake. We decided to reshoot the video with some updates and with that error fixed. So here we go.

This is Startup Fundraising 101.

Glossary:

Stock: Stock is what represents the company ownership and it is distributed in parts to reflect how much of the company each owner possesses. Each owner, or shareholder, receives a certain number of shares of stock.

Priced Round: a round in which both the founders and the investor are able to agree on an accurate valuation for the company, and so the investor gets shares of company stock.

Convertible note: A convertible note is like a loan, but instead of using an asset like a house for collateral, the company stock is the collateral at a valuation for the company that would be decided in the future.

#startups #Slidebean #StartupFunding

0:00 Startup funding 101 - Intro
1:36 Startup funding 101 - Stock
3:17 Startup funding 101 - A priced round
9:52 Startup funding 101- Convertible notes
13:31 Startup funding 101 - What if the company doesn’t grow?
15:06 Startup funding 101 - Summarizing

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Read the video transcription + sources: https://slidebean.com/blog/startups-c...


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