3 Share Dilution mistakes: Convertible Notes & Y-Combinator SAFE Simple Agreement for Future equity скачать в хорошем качестве

3 Share Dilution mistakes: Convertible Notes & Y-Combinator SAFE Simple Agreement for Future equity

There are 3 common mistakes startup founders make in raising money with convertible notes and/or the Y Combinator SAFE (Simple Agreement for Future Equity) that increase startup share dilution, resulting in a cap table (capitalization table) that has a lot less ownership for the founders than it should. One is to not keep careful track of how much money is being raised in convertible notes and/or SAFEs, and the resulting dilution can be a big surprise when a priced round converts them all to stock. A second mistake is to raise so much money in convertible notes and SAFEs that the prospective Series A (priced round) investors are put off by the amount of share dilution they are face with. That can result in them negotiating a conversion approach that causes the founders to absorb all the dilution. Which leads to mistake number 3: not understanding that there are multiple ways to convert convertible notes and SAFEs to stock, some of which create much more share dilution than others. In this video I explain how to avoid all 3 of these mistakes, and pave they way for the next video that walks through a spreadsheet that explains in detail 2 of the methods for converting convertible notes and SAFEs to stock and helps you forecast the share dilution impact of your convertible securities on your cap table.