Preparing for Funding Ep3: Friends & Family Funding

Office Hours is our podcast covering general issues related to small businesses and startups. Preparing For Funding is a series of Office Hours episodes about getting your company’s legal house in order before taking on funding.

We have recut this series to reflect updates in law and venture trends in the last 5 years. Listen to Ep3 Recut here.

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In this episode, we discuss how to mitigate the risks of Friends & Family funding, which include disproportionate valuations, violating SEC and state securities laws, and messy cap tables.

Related Content

Click here to view terms used in this podcast
Accredited Investor
Cap Table
Common Stock
Convertible Note
Down Round
Equity Financing
Exit
Institutional Investor
KISS Agreement
Preemptive Rights
Preference
Preferred Stock
Pro-Rata
Right of First Refusal (ROFR)
SAFE
Security
Stock Purchase Agreement
Valuation
Other Podcasts in this Series
1 of 15 Preparing for Funding
Preparing for Funding Ep1: Incorporation
2 of 15 Office Hours
Preparing for Funding Ep2: Founders Agreements
3 of 15 Office Hours
Preparing for Funding Ep3: Friends & Family Funding
4 of 15 Preparing for Funding
Preparing for Funding Ep4: Pitch Decks
5 of 15 Office Hours
Preparing for Funding Ep5: Initial Sophisticated Investors
6 of 15 Preparing for Funding
Preparing for Funding Ep6: Accelerators / Incubators
7 of 15 Office Hours
Preparing for Funding Ep7: Seed Round
8 of 15 Office Hours
Preparing for Funding Overview
9 of 15 Office Hours
Preparing for Funding Ep1: Incorporation – Recut
10 of 15 Office Hours
Preparing for Funding Ep2: Founders’ Agreements – Recut