Startup Funding Explained - Seed Round and Stock Option Pool (Part II)

[@shivdeepsucess]

O boy! You are doing such an amazing job for new Founders. I got to know your channel later but saw your website first for creating pitch deck, the way you have explained the process and work flow it makes be confident to give you Business buying your service! Keep going buddy, you are doing amazing job and your con skills are outstanding. Good luck

[@slidebean]

Thank you so much, Shivdeep! We're happy to read we've helped!

[@ozzyfromspace]

Not a single dislike. Exactly how I like it 😊. Thanks for that awesome discussion, I’m learning a lot from this series, and I’ll be pitching my tech starting next month. I’ll need some slides 😉🎊

[@slidebean]

Good luck, Float! If you need us, you know where to find us! slidebean.com

[@youknowitzg00d]

That's cool. Didn't realize videos premeired. Excited to see it

[@slidebean]

Thanks! Let us know what you think!

[@nicholasvoorhees133]

Really valuable content! I'll be pitching soon so you've definitely landed yourself another future customer. I know you guys touched on equity splits in one of your past videos... but, maybe an in-depth video on equity splits amongst founders could be fruitful? And how to determine what's fair in regards to different circumstances? i.e. founders that join the MVP later than others, are part-time, provide less value, etc?

[@slidebean]

Hi! Video idea noted! Good luck with that pitching and thank you for making us part of your project! :)

[@theworldismine7788]

yup and more explanations about first employees equity

[@henrysylva2224]

I have learnt soo much from you since I subscribed.. am so greatful

[@slidebean]

We're glad to read that, Henry! Thank you!

[@transitowl]

Your videos are so great! I'm learning so much. I have a clarifying question: for a Convertible note you say the investor gets a discount at 20%. Do you mean it's a discount on share price? If not, a discount on what?

[@alejandrolatorre7310]

In your opinion? would be a great decissionconvertible notes in exchange a prototype . It can works like a money in first stages , like a raised money

[@slidebean]

Hi, Alejandro! Caya replies to these questions on Discord every week. Join him at slidebean.com/live :)

[@josephajibodu2377]

Insightful … 😇Thank you

[@ruggericarlo9859]

Great work with the vid. Keeping it simple but effective

[@satyamskillz]

What if we don't have rich friends or family for early investment? This is my mental block !!

[@slidebean]

Good remark! Welcome to discuss with other founders or Caya on Discord slidebean.com/startup-cafe

[@affansiddhiqui3739]

1:17 i liked that shameless plug😂

[@slidebean]

Glad you enjoyed it! ^^

[@william_8844]

6:40 I believe its the employees who buy the shares at the strike price and make a profit, and not the company buying. Or I may be learning something new here, more info would be great. Great vid thou, keep up the good work.

[@ozzyfromspace]

W. He just misspoke, that’s all :) you’re 100% right

[@ConradDemasiado]

Caya, sos un crack!! Buena nota mae

[@federicojara2038]

Hey! I will like to know how would it work for a Biotech company, as a big part of the first part is R&D, so FFF money might be not enough. Thanks Great channel by the way

[@slidebean]

Thanks, Federico. Caya replies to these questions on Discord every week. Join him at slidebean.com/live :)

[@ozzyfromspace]

Frederico, if you're at the R&D stage working on a "hardtech" solution, I recommend becoming a student at a good University and using that to tap into their grants and sponsorships. I used to attend Michigan State University and we have an innovation center. If you're working on cool stuff, they'd basically throw money at you to make it happen, and try to connect you with other early sponsors. A second option would be to join a good accelerator, like Techstars or YC. If you're accepted to YC, they invest $150k @ ~7% and plug you into their Network of founders, doers, and investors. I will be applying to YC in a month (or less) for my aerospace technology. Take the time to apply strong, you have nothing to lose and everything to gain! I'm curious, at a high level, what are you working on? Good luck buddy.

[@federicojara2038]

@@ozzyfromspace thank you for your answer. I think we are inclined to option 2. It's not in our plans to do a PhD and comeback to Uni. However, we are being supported by two professors at Uni, that are partnering in the development of our technology in their Labs. At this moment we are coursing the VentureLab course for Business in Biotech. Which is helping us to organize our plan of action. I will check Techstars and YC. We are located in Switzerland. We are working on Biosynthetic molecules. Best and thanks for the support

[@ozzyfromspace]

@@federicojara2038 that's awesome, I wish you the best with your research!

[@masonmincey]

I'm a little confused how the option is 500,000. When doing the calculation I got 480,000 shares. Could you detail how you got there

[@slidebean]

Hi, Mason! Caya responds to these questions weekly on Discord. Make sure you join him there: slidebean.com/live :)

[@shawnfrank5303]

Hi guys great work, been binge watching your videos. One confusion I had was when we get in an investor, how are they usually paid back ? Is it with shares or do they expect to get shares and the loan money returned to them as well ? This was one part that confused me.

[@slidebean]

Good Q! Welcome to discuss with other founders or Caya on Discord slidebean.com/startup-cafe

[@ceotag8663]

Waiting it's premiering... Come On...

[@slidebean]

Hope you get to catch it!

[@ceotag8663]

@@slidebean of course...

[@tomcat2512]

There's something wrong with your computation at 1:48. $30,000 x 12 x 5 is $1,800,000 only which is 18% of the chunk of the company. And $2,000,000 as you have stated is not 25% but 20% only.

[@etienneguerou2016]

I love it but like ... too short and we have to wait for the next episode... 😉😉 ... 😂

[@Toneload11]

I do not agreed that is debt and if convert later the founder loses too much. The investor must be there for good and bad time. Not only for good time.

[@albinealias6269]

Valuable..

[@farazirfan47]

How did you calculate 300% growth with 10% consistent monthly growth ?

[@cayahere]

Faraz Irfan x*(110%^12) = x*3.13

[@farazirfan47]

@@cayahere Thank you so much for creating valuable content, keep it up!

[@cantaloupefighter]

@@cayahere With 30k MRR growing at 10%/mo, I'm getting 86k at the end of 1 year, or 185%. what am I missing?

[@bryantony9836]

For the algorithm

[@angcil88]

That's the shameless part 😂

[@soorkie]

gg

[@pratapbhanu5758]

kind of confusing, could have been much more explanation to understand the concept.