Preparing for Funding Ep7: Seed Round – Recut

Office Hours is our podcast covering general issues related to small businesses and startups. Preparing For Funding is a series of Office Hours episodes hosted by VW Partners Kevin Vela and Rad Wood about getting your company’s legal house in order before taking on funding. We are recutting this series to reflect updates in law and venture trends in the last 5 years to better help you navigate through preparing for funding. In the final episode of this series, we discuss seed rounds, including the difference between convertible notes, SAFEs, and equity rounds, and how seed rounds have changed over the last 5 years. Time Stamps 1:57 – Concern for Accelerators 3:48 – Seed Rounds in 2018 v 2023 10:24 – Convertible Securities: SAFEs & Convertible Notes 15:03  – Why SAFEs Are Popular 18:58 – Equity Rounds 23:23 – Party Rounds, Lead Investors & Maturity Dates Related Content Vela Wood Venture Deals Report 2022 Comparing Convertible Instruments Dilution Done Well The Mechanics of Converting Convertible Notes Understanding The New Post-Money SAFE VDR Ch. 4, Part 1: Economic Terms of the Term Sheet VDR Ch. 5: Control Terms of the Term Sheet References NVCA Model Legal Documents Series Seed Financing Documents Y-Combinator SAFE Financing Documents