By Riaz Karamali
This blog post picks up where the last post in this start-up series left off, with the assumption that the start-up has been in incorporated, completed its founders’ round of financing, created an executive summary and pitch deck and is ready to begin the hunt for “angel” investors (as used in this post, the term angel investors will include all types of potential investors in a company’s initial or seed round of funding, including founders’ friends and family, “super-angels” and early stage funds). There are several different structures an angel or “seed round” can take — among them, sale of common stock, sale of convertible notes, and sale of a “light” preferred stock. While ultimately, the investor group may have the final say over the structure of the financing, it makes sense to understand the alternatives in advance and approach investors with a clear plan in mind.
Continue Reading Starting Up the Start-Up: Approaching the Angel Financing Round