On Thursday, April 4th, Perkins Coie’s Palo Alto office hosted the startupPerColator Series event, “Seed Investments: How to Be Attractive to Early Stage Investors and the “Right” Seed Investment Structure for You.”
You’ve developed your idea into a business. It’s taken a lot of sweat and hard work, and there have been more than a few rough spots. Acquirers are now taking note and making inquiries. Maybe investment bankers are courting you. You have arrived!! Well, almost . . . .
“This deal is standard. Let’s close TODAY!!” We’ve heard this so many times only to find out that the early stage technology start-up hasn’t fully protected its intellectual property and, as a result, funding gets delayed, or in some extreme cases, even cancelled.
“I think we need about $1,000,000 to $2,000,000 for our first round of funding. Should we use convertible notes or issue preferred stock?” This is one of the most common questions we get from entrepreneurs looking to raise their first round of outside funding. When deciding between convertible notes or preferred stock, consider these key factors.