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Startup Seed Financing Toolkit
Practical Law Toolkit w-001-0456 (Approx. 7 pages)
Startup Seed Financing Toolkit
by Practical Law Corporate & Securities
| Maintained • USA (National/Federal) |
Resources to assist early-stage startup companies and their attorneys with planning, structuring, documenting, and executing seed financing rounds of capital raising from angel investors, friends, and family.
The first and often most vital round of financing for a startup company is the seed round. Founders and their counsel must strike a balance between the need to raise seed capital quickly and cost-effectively and the need to avoid pitfalls that can lead to costly, intractable problems down the road.
This Toolkit includes resources that:
- Provide an overview of startup venture financings generally, and seed financings in particular.
- Discuss the most popular types of seed-financing instruments, such as convertible notes and simple agreements for future equity (SAFEs), and their relative advantages and disadvantages.
- Describe the process for conducting seed financing rounds.
- Review the securities law considerations in seed financings, including the regulatory framework for crowdfunding offerings.
- Provide a starting point for drafting common seed financing documents.
For a complete list of Practical Law's resources for startups, see the Startup Company Toolkit.