Dictionary
Fundraising terms.
4 terms in Fundraising.
Convertible Note Fundraising
A short-term loan to a startup that converts into equity at a later priced round instead of being repaid in cash.
Dilution Fundraising
The reduction in your ownership percentage that happens when a company issues new shares, typically to raise money or grant options.
SAFE (Simple Agreement for Future Equity) Fundraising
A simple contract that gives an investor the right to future equity in exchange for cash now, converting to shares at a later priced round.
Term Sheet Fundraising
A mostly non-binding summary of the key terms of an investment, used to agree the deal before lawyers draft the final contracts.