Funding Mechanics

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Funding Mechanics

Websites

Reg D Resources
Don't have thousand of dollars to have a securities attorney prepare your offering documents? Regulation D Resources offers a much cheaper alternative. We have not used them, so this does not constitute an endorsement.

Articles

Anatomy of a Term Sheet
Venture Capital: An overview of trends, strategies, and structural issues.
Creative Use of Milestones Can Unlock Venture Capital
The use of milestones can help both the entrepreneur and the investor when properly structured. The article has a few dated references, but the underlying concepts are sound.
Sample Angel Investor Term Sheet
Preferred stock private placement term sheet used by Silicon Valley's Band of Angels.
Sample Bridge Loan Promissory Note
Sample (and simple) promissory note sample used by Silicon Valley's Band of Angels.
Sample Term Sheet - AllianceOfAngels.com
Sample term sheet.
Series A Equity Financing Documents
The law firm of Wilson Sonsini Goodrich & Rosati prepared a set of legal documents to support angel financings on behalf of Y Combinator. Y Combinator has graciously released these documents into the public domain (or "open source" as they call it). Be sure to read the disclaimers and have your securities attorney involved if you choose to use these documents.
Term Sheet Definitions
Common term sheet terminology defined.
The True Costs of Raising Money
You probably don't have a clue what it really costs to raise the capital you need to fund your business. This expert spells it out for you.
Understanding Convertible Loans
Before you borrow funds with a convertible loan, make sure it's a positive move for the future of your business.
Understanding the Financing Stages
From seed stage to mezzanine, a breakdown of the key financing terms and what they mean to you.

Tools & Utilities

High Tech Startup Valuation Estimator
Wondering what your pre-money valuation will be if a VC ever puts a term sheet on the table? Answer the following questions, and we'll calculate an approximate range for you. Of course, every situation is different, so your mileage may vary.