What happens when an investor says yes to your fundraising pitch? In the third video of our startup series, we dive into financing instruments and offer structures, to help founders understand what it means to issue equity. Join Carta’s Crystal Shen as she delves into SAFEs and priced rounds, and how founders can bring investor capital into the business in a way that’s mutually beneficial. You’ll get a clear and concise breakdown of how a priced round works, as well as the difference between pre- and post-money SAFEs.
This video also shines a light on the importance of running pro forma scenarios to better-understand ownership allocation. Crystal will also introduce founders to term sheets and guide you through the process of negotiating them. It all culminates in an overview of how to close a priced round, update your cap table and complete a 409A valuation—all before putting investor capital to work!
Learn more about how Carta can help your startup.