simple agreement for future equity

Has Y Combinator truly changed the early-stage startup investing game, perhaps in its own favor? Or did it merely provide more time to its portfolio companies to reach their next…

Has Y Combinator’s new deal changed the early-stage investing game?

Tactically, fundraising is a skill like any other. You get better the more you do it. But practicing gets you nowhere if you don’t have a strong foundation in understanding…

Founders: How well do you really understand seed-stage financing?

In the context of a term sheet, pro rata rights (or pro rata) govern whether investors may continue to invest in subsequent rounds of funding in proportion with their ownership…

What founders need to know about pro rata rights

As the saying goes, where you stand on an issue often rests on where you sit. Translated into startup law and finance, your views on how to approach fundraising are…

Why convertible notes are safer than SAFEs

To keep up with the growing sizes of early-stage funding rounds, Y Combinator announced this morning that it will increase the size of its investments to $150,000 for 7 percent…

Y Combinator is changing up the way it invests

The shortcomings of SAFE notes are coming home to roost; ironically, entrepreneurs are paying the price. Y Combinator invented the notes with a noble goal: “we intend the SAFE to remain fair…

Why SAFE notes are not safe for entrepreneurs