Education Archives

Mar 27, 2020

What is a Convertible Note?

A convertible note is a form of financing for early-stage startups. Because it’s a rather popular form of financing, we thought it would be pertinent to cover this security. As its name implies, convertible notes are a form of short-term debt that converts into equity in the future, normally in conjunction with a future financing round. Convertible notes differ from…

Education

Mar 24, 2020

Types of Investors in the Startup Ecosystem

As you immerse yourself in the startup ecosystem, you’ll get acclimated to terms like angel investor, venture capitalists, and more. But what are family offices? Sovereign wealth funds? We’ll cover the remaining types of investors prevalent in the ecosystem in this article! Institutional Investors Private Equity: Equity, or the shares representing the ownership of an entity, that is not…

Education

Types of Investors in the Startup Ecosystem

Mar 20, 2020

What is Common Stock? (And Related Terms)

What is Common Stock? (And Related Terms) When raising venture capital, companies can raise equity, debt, or some combination of the two. In this article, we’ll dive deeper into equity-based capital, and in the future will go over debt and hybrid securities. Common Stock Common stock is the simplest form of equity issued and has several key characteristics: It…

Education

What is Common Stock? (And Related Terms)

Mar 10, 2020

What Financial Returns to Expect from Equity Crowdfunding

Public markets have returned 10.2% annually vs. private markets 26% annualized returns. We dive into the data to analyze public vs. private market risks and returns and what investors might expect from Reg CF.

Education

What Financial Returns to Expect from Equity Crowdfunding

Mar 10, 2020

Will Equity Crowdfunding Replace Angel Investors?

Will Equity Crowdfunding Replace Angel Investors? The JOBS Act legalized equity crowdfunding, disrupting the traditional investing environment, which limited venture investing to accredited investors. Thanks to the JOBS Act, even a non-accredited investor can participate in equity crowdfunding startup investing since the JOBS Act removed the requirement of having an annual income of $200k for the past two years (or…

Education

Will Equity Crowdfunding Replace Angel Investors?

Mar 10, 2020

What are the Best Equity Crowdfunding Sites and Platforms?

What are the Best Equity Crowdfunding Sites and Platforms? The main advantage of crowdfunding is that startups can get sponsors to make investments without the mediation of banks and venture funds. When looking for crowdfunding sites, you first must understand the five types of crowdfunding that are used in successful campaigns worldwide: Donation crowdfunding Debt crowdfunding Rewards crowdfunding Royalty crowdfunding…

Education

What are the Best Equity Crowdfunding Sites and Platforms?

Mar 10, 2020

What are the Risks and Rewards of Investing Through Equity Crowdfunding?

Crowdfunding is a way for companies to raise money from the public for their ventures or projects, primarily through crowdfunding websites, online forums, and social media. Equity crowdfunding campaigns take things a step further. In exchange for (relatively) small amounts of money, investors get a slice of equity in the venture. Besides traditional options of raising capital (e.g., appealing to…

Education

What are the Risks and Rewards of Investing Through Equity Crowdfunding?

Mar 5, 2020

Equity Crowdfunding for International Investors

Can international, non-US based investors invest in Reg CF and Reg A offerings of US-based companies? We investigate the rules and regulations to let investors know.

Education