Articles & Resources
Articles and resources for angel investors, entrepreneurs and people interested in diversity, equity, and inclusion.
Create Your Deal Room Before You Start Raising a Financing Round
Sand Hill Angels recommends that startup founders start creating their investor deal room before they start raising a financing round of any size. When startups apply to Sand Hill Angels, our members often start doing some due diligence even before we decide on funding interest. Seeing a proper deal room in place is often a signal to investors that the founder knows what is needed and is well organized. Getting the deal room can also avoid a scramble to pull together items in a short amount of time.
Post-Money SAFEs: Investor-Friendly Option
For many years startup founders raised their early finance rounds using convertible notes. The legal costs and negotiation time for priced rounds were prohibitive. In late 2013 Y Combinator introduced the original SAFE, which stands for “Simple Agreement for Future Equity”. These became popular throughout the Silicon Valley, along with 500 Startups’ KISS (Keep It Simple, Stupid) variation, but they had some drawbacks that disturbed some investors, which could sometimes hamper a founder raising as much as she wanted.