Decoding Equity And Convertible Notes - Startups 101

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Published 2019-02-21
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Understanding stock, preferred stock, options, convertible notes, angel investing, venture capital, and other fundraising instruments can be truly overwhelming.
If you are an early-stage startup company in the tech space, the best way to raise capital is with a convertible note or a similar instrument. However, to understand how those work, we first need to understand how stock works.

#startups #fundraising #venturecapital #slidebean #startuplife

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About Slidebean

Slidebean is a platform for founders to scale their startups. Our platform offers everything you need to build your startup, your pitch deck, set up your company, and start gaining traction.
Our team of experts can also help you write and design your pitch deck and build the financial model for your startup.

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All Comments (21)
  • I’m a VC/IPO/M&A lawyer and was looking for some easy videos to explain startups, VC funding, etc. to my 18 year old daughter who is beginning business program at college. This video and this entire series is excellent. I also used to teach this stuff at MBA/Law school and explaining these things in a concise and easily understandable way is not all that easy. Great job to the Slidebean guys. And yes, as you mentioned in another video, what you have done with your company and technology is amazing even if you did not displace PowerPoint, etc. Congrats on your success and on eventually figuring who you really are and what your market is. Sadly, most tech entrepreneurs never make it that far.
  • @fumbio2718
    This feels like a MBA class in 15 mins brilliant
  • Dude you’re the best mentor that i have never got, but seriously man that was the best explanation of equity that i have ever heard thanks!!!
  • I'm just stunned by the amount of information your video conveys, things that my four years Bachelor failed to explain in such a simplified and structured way.
  • @kishalayray7570
    You are the only one who is delivering these valuable contents on YouTube love and thanks from India
  • @BelindaAng
    The most effective explanation I've come across! Have subscribed! Looking forward to your view on vesting.
  • I cannot thank you enough for this comprehensive yet approachable lesson! I look forward to watching more of your videos 🙏🏾
  • @douglasocosta13
    This channel is making me fall deep in love with startups, more than I was alredy. Thank you very much for the excellent material!
  • @quanlynique
    This is beyond wonderful. I actually understand this. I paid a lawyer to break this down and the lawyer didn't even know what they were looking at. This now helps me with making my decision on signing a contract or passing. Thank you so much.
  • Great content Asma'a - apreciated! Just to correct 11:59: Walter/Jesse: 500.000;45.6% //Gus 75.000;6.84%//Madrigal 21.500;1.96%
  • @3519Marc
    Thank you , really enjoyed the presentation and was well worth watching. Note on the supercharged round you flipped the values for Gus and Mardrigols position. Gus with the 7 million cap should have a larger amount than Margo with her 1 million investment and 50 million valuation. please check it out thanks again for the video .
  • @ayanda1271
    A new world has been open to me on YouTube. The clarity is refreshing and is exactly on the subject I need at this stage of my start-up
  • @ACE_77
    It's funny how much information this 15 min video has, really helpful, thank you and keep up the amazing work
  • Pretty much clear! Enjoyed. Looking forward to watching an in-depth vlog on employee stock - pros and cons!
  • @andormerks3834
    Yeah, I love the clarity and your friendliness ... not to mention the 'random' examples: Octopus Car Wash :D :D :D
  • I've been trying to understand this for a looong time and finally, you laid it out in a way that very easy to understand Thank you brotha. I will definitely subscribe and share this content.
  • @Mykol225
    Great explanations and production value. Good job!
  • @kafeleboothe
    This is great! Though your math at 10:56 is off: 525k/4MM is 13.125% -- but assigning Gus 131.25k shares assumes there was 1MM shares to divy up, but they would've issued new stock for Gus. So he would've had 13.125% of the new total (incl. issued), so 151k shares, bringing the total to 1.151MM shares. This is a classic markup/margin calc error, a simple mistake (I didn't touch Madrigals calc, but I'm sure the above would change her numbers as well).
  • @luiscader
    This was surprisingly one of the most accurate and easy to understand explanation of SAFEs and raising Financing. Amazing, well job! super impressed that you have this knowledge at a young age. Great job man!! Will definitely share and subscribe.💯