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.

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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.

Related Content:

• AngelSpan
• 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

Venture Glossary

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
• Exit
• Institutional Investor
• KISS Agreement
• Preemptive Rights
• Preference
• Preferred Stock
• Pro-Rata
• Right of First Refusal (ROFR)
• SAFE
• Security
• Stock Purchase Agreement
• Valuation

Contact Us

Email us at podcasts@velawoodlaw.com with any comments or suggestions!

Posted in Podcasts, Preparing for Funding

Vela Wood is a boutique corporate law firm with a local feel and a global impact. We focus our practice in the areas of M&A, Private Equity, Fund Representation, and Venture Transactions.