Module 02
How fundraising actually works, explained for founders. Understand the terms that shape your ownership and your company's future.
What your company is worth before new money comes in.
This number determines how much of the company you give up. A higher pre-money does not always mean a better deal.
What your company is worth after the round closes.
Ownership percentages are calculated from the post-money value.
The reduction of your ownership percentage.
Dilution is normal. Unexpected dilution is the real risk.
A record of who owns what in the company.
A clean cap table builds trust. A messy one slows fundraising.
Simple Agreement for Future Equity.
Investors give money now. Shares are issued later. Valuation is delayed, not dilution.
A loan that converts into equity later.
It includes interest and a maturity date. If the next round is delayed, pressure increases.
Shares set aside for future employees.
Usually negotiated before a round closes. A common source of hidden dilution.
When equity is earned over time.
Standard is four years with a one-year cliff.
A summary of the deal terms.
Most outcomes are decided here, not in final documents.
How much time you have before fundraising becomes urgent.
Raising with time gives you leverage.
Review fundamentals
Module 01: Financial Intelligence