by @abhia90 // newsletter // youtube
YC Partner and GC Carolynn Levy details the basics of startup financing and how modern early stage rounds of financing are done using convertible securities, like the SAFE.
1:33 – The basics: form a corporation, need money to grow?, sell a part of the company
2:58 – Fundraising terms
3:58 – What has changed: structure, access, focus
5:10 – What hasn’t changed: preferred stock financing, valuation and dilution, communication
6:42 – Old way of raising early money: Series A preferred stock financing
8:33 – What was broken?
9:33 – The transition: bridge loan financings
10:46 – Realization: convertible promissory notes are a better way to fund early stage startups
12:01 – Modernization of the convertible – SAFE (Simple Agreement for Future Equity)
14:03 – When do priced rounds happen?
15:12 – Is modern early stage financing perfected?
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by @abhia90 // newsletter // youtube