Login

Post on Medial

Anonymous

Anonymous

Stealth • 3m

✨ 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 ?

Anonymous

Anonymous

Stealth • 3m

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 replies7 likes
2

More like this

Recommendations from Medial

Image Description

Amit Kumar

Stealth • 3m

When startup go for funding they get their funds from investors for some equity so if the enterpreneur gives his equity to the investor so in next funding round do investor has to dilute their equity too? or just the enterpreneur?

1 replies4 likes
Image Description
Image Description

Antazya S Jatrana

Stealth • 4m

START-UPS = RISK As a founder. As an investor. No safe havens here.

4 replies3 likes
Image Description

Dhairya Joshi

Stealth • 6m

Just a question. How much equity should a fresh startup give to the investors and what should be the ask or valuation how do we know that for saas b2b business?

1 replies1 like
Image Description
Image Description

SHIV DIXIT

Stealth • 4m

Professional Startup legal Aggreements “ Top 28 Legal Aggreements for protecting your startup or company from any kind of damage ” 1=} Employment Agreement 2=} Non-Disclosure Agreement ( NDA ) 3=} (IP) Assignment Agreement 4=} Non-Compete Agre

See More
7 replies44 likes
93
Image Description
Image Description

Vaibhav Babruwan Shingde

Stealth • 6m

Interesting News From OYO 🤔🤯 • India’s Oyo, once valued at $10B, seeks new funding at 70% discount. • Oyo, an Indian startup, seeks new funding at a $3 billion valuation, down from $10 billion. • Negotiating with investors like Malaysia's Khazan

See More
10 replies8 likes
2
Anonymous
Image Description
Image Description

Anonymous

Stealth • 6m

90% valuation cut basically means the founder equity and ESOPs must have been wiped off 🤯

9 replies12 likes

financialnews

Stealth • 1m

“Nifty Smallcap Stocks: 50% Trading 20-42% Below 52-Week Highs – Investor Strategies” “Dalal Street Small-Cap Stocks: Investor Interest Wanes Amid Weak Earnings, Geopolitical Tensions, and Profit-Taking” Investor interest in small-cap stocks on Dala

See More
0 replies2 likes

Raj Bahadur

Stealth • 25d

finding an investor and a mentor with a exchange of 70% equity but the startup is on idea stage if someone investor agree to invest i'll take dropout from college to involve in business full time

0 replies5 likes
Image Description

chirag sharma

Stealth • 2m

OYO's valuation drop to $2.4B is due to profitability struggles, post-pandemic travel dips, high operational costs, and cautious investor sentiment. The inflated startup valuations are facing a reality check. #OYO #Valuation #Startups #Indian

2 replies2 likes

Mahendra Lochhab

Stealth • 6m

The Aditya Birla Group has achieved a market valuation of $100 billion. The group's portfolio includes UltraTech Cement, Grasim, Hindalco, Aditya Birla Capital, Aditya Birla Sun Life AMC, Vodafone Idea, Aditya Birla Fashion & Retail, TCNS Clothing,

See More
0 replies6 likes

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