Startup Seed Financings: Overview | Practical Law

Startup Seed Financings: Overview | Practical Law

An overview of the seed round of financing for early-stage startup companies. This Practice Note describes the most common types of seed-stage investors, including friends and family, high-net-worth angel investors, and super-angels. It also provides an overview of the most frequently used types of seed financing instruments, including convertible notes (also referred to as convertible promissory notes, bridge notes, or convertible debt), simple agreements for future equity (SAFEs), Series Seed convertible preferred stock, and common stock. The Note analyzes some advantages and disadvantages of each seed financing instrument, helping company counsel better advise startup founders on choosing the instrument that best fits their company's needs.

Startup Seed Financings: Overview

Practical Law Practice Note Overview w-000-5653 (Approx. 16 pages)

Startup Seed Financings: Overview

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
An overview of the seed round of financing for early-stage startup companies. This Practice Note describes the most common types of seed-stage investors, including friends and family, high-net-worth angel investors, and super-angels. It also provides an overview of the most frequently used types of seed financing instruments, including convertible notes (also referred to as convertible promissory notes, bridge notes, or convertible debt), simple agreements for future equity (SAFEs), Series Seed convertible preferred stock, and common stock. The Note analyzes some advantages and disadvantages of each seed financing instrument, helping company counsel better advise startup founders on choosing the instrument that best fits their company's needs.