🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

Back

Anonymous

Anonymous

Hey I am on Medial • 7m

✨ Entrepreneur IQ Test ✨ Which financial instrument allows a company to raise capital while delaying the determination of the valuation of the company, and is typically used when an exact valuation cannot be agreed upon during a financing round ?

4 replies7 likes
2
Replies (4)
Anonymous

Anonymous

Hey I am on Medial • 7m

A SAFE (Simple Agreement for Future Equity) is an agreement between an investor and a company that provides rights to the investor for future equity without determining a specific price per share at the time of the initial investment. It is a flexible funding mechanism commonly used by startups to avoid complex valuations during early funding rounds. Example:Let's say your startup needs to raise capital quickly, but there is uncertainty around the company's current valuation. You use a SAFE agreement to attract investors. Here’s how it works:No Interest or Maturity Date: Unlike a convertible note, a SAFE doesn’t accrue interest or have a repayment date. Future Equity: The investor will receive equity when the company holds a priced round in the future.Valuation Cap or Discount: Often, a SAFE includes a valuation cap or a discount, giving the investor a beneficial price per share when the SAFE converts to equity.

0 replies8 likes
3

More like this

Recommendations from Medial

Anonymous
Image Description

Anonymous

Hey I am on Medial • 7m

✨ ENTREPRENEURS IQ TEST ✨ In the context of venture capital, which term describes a contractual clause that allows investors to protect their investment by requiring the startup to grant them the option to purchase additional shares at a discounted

See More
1 replies5 likes
1
Image Description

Sidharth J

 • 

DigitalzPro • 2m

A proficorn is a profitable, private, and promoter-funded company with a reasonable valuation. The term was coined by Rajesh Jain, the founder of Netcore Cloud. Characteristics of a proficorn: Profitable: Proficorns are profitable companies that ca

See More
1 replies13 likes
2
Image Description
Image Description

Vaibhav Babruwan Shingde

Student • 8m

why indian Startups are opting for Debt financing? 1. Preserving equity: Debt financing allows startups to raise capital without diluting their equity and ownership. This is important for founders who want to maintain control of their company. 2

See More
11 replies14 likes
5
Image Description
Image Description

SHIV DIXIT

CHAIRMAN - BITE INDU... • 3m

📚DAILY TOP BEST BUSINESS COURSES📚 🚀 Today you will get all best books for learning “ Financial analyst Skill ” With Direct Download link Available freely 🔗 💡All resources available start learning now 1. The Richest Man in Babylon ✨Downlo

See More
11 replies17 likes
15
Image Description
Image Description

TREND talks

History always repea... • 3m

🤯 Dream job – at WHOOP, employees get a $100 bonus for a good night’s sleep. 😴💸 🤣 The company specializes in sleep and health tracking gadgets, providing them to employees for free. If they achieve a sleep score higher than 85%, they receive a n

See More
4 replies17 likes
Image Description
Image Description

TREND talks

History always repea... • 3m

🌍 SpaceX is in talks to sell shares, which could raise Elon Musk's company valuation to around $350 billion. 🚀💼 This would solidify SpaceX's status as the most valuable private startup in the world. 🌍✨ Earlier this year, SpaceX was valued at a

See More
2 replies16 likes
Image Description
Image Description

SHIV DIXIT

CHAIRMAN - BITE INDU... • 5m

📖 DAILY BOOK SUMMARIES 📖 🔗 DIRECT FREE E-BOOK DOWNLOAD LINK AVAILABLE — https://drive.google.com/file/d/1i50x1Zx4uVjKiArsV39GRDvhyrPzbGM3/view?usp=drivesdk 🔥 Corporate Finance 🔥 🚀 27 Lessons by 👉 ✨ Jonathan Berk and Peter DeMarzo ✨

See More
2 replies18 likes
13

CA Yugesh

Chartered Accountant... • 3m

🌟 The VIP Pass of the Investment World: Unraveling PREFERENCE SHARES In the bustling world of investments, these shares are like the golden tickets that come with some extraordinary perks. In simple words, Companies need investments but may not wa

See More
0 replies3 likes
Anonymous
Image Description
Image Description

Anonymous

Hey I am on Medial • 7m

✨ Ceo IQ test question ✨ You are the founder of a tech startup that has developed an innovative software platform. After several months of rapid growth, your company is facing a strategic decision: whether to continue bootstrapping or seek venture c

See More
12 replies13 likes
6

Vikas Acharya

Building WelBe| Entr... • 7d

X finally valued at $44 billion, the exact sum Elon Musk paid for the social media site in 2022 Months after the valuation of X (formerly Twitter) was estimated to have fallen by 80 percent, investors are now pegging the social media platform’s valu

See More
0 replies20 likes
2

Download the medial app to read full posts, comements and news.