Preparing for Funding Ep3: Friends & Family Funding
March 6, 2018 | By Vela Wood
Office Hours is a podcast hosted by Vela Wood venture attorneys Kevin Vela and Aaron Terwey covering general issues related to small businesses and startups. Preparing For Funding is a series of Office Hours episodes about getting your company’s legal house in order before taking on funding.
In this episode, we discuss how to mitigate the risks of Friends & Family funding, which include disproportionate valuations, violating SEC and state securities laws, and messy cap tables.
- Hiring A Developer? Get It In Writing And Signed First.
- Securities Straight Talk Vol. 1: Securities Laws Matter To Startups (Yes, Yours Too)
- VDR Ch. 8: Convertible Debt (and SAFEs)
- Keep Your Investors Updated
You can find definitions and explanations of terms used in this podcast on our site, VentureGlossary.com.
- Accredited Investor
- Cap Table
- Common Stock
- Convertible Note
- Down Round
- Equity Financing
- Institutional Investor
- KISS Agreement
- Preemptive Rights
- Preferred Stock
- Right of First Refusal (ROFR)
- Stock Purchase Agreement
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