What you'll learn

• When to Seek Professional Legal and Accounting AdviceFounders need enough financial and legal literacy to understand professional advice and recognize what requires a licensed specialist versus what can be handled with templates or self-study, as misjudging this distinction can waste capital or create long-term liabilities.
• Startup Valuation BasicsThe process of estimating what an early-stage company is worth, typically treated as a negotiated agreement between founders and investors rather than a calculation based on earnings or comparable companies.
• Startup Funding Stages and LifecycleA sequence of capital rounds, each sized to reach specific milestones that enable the next round, corresponding to increasing levels of proof and valuation.
• Investor Due Diligence ProcessThe investor's verification of your pitch claims through examination of financial records, legal status, and operations, scaled in depth according to round size and stage.
• Equity DilutionThe decrease in an owner's percentage stake in a company that occurs when new shares are issued, even though the owner's absolute share count remains unchanged.
• Term SheetsA non-binding document outlining the key investment terms in principle before lawyers draft the final legal agreements, with the exception of specific clauses like confidentiality that become binding upon signature.
• Understanding Financial StatementsThe ability to read and produce the three core financial documents—income statement, balance sheet, and cash flow statement—that show whether a business is profitable, healthy, and worth investing in.
• Equity Classes and Ownership StructureDifferent types of shares in a company carry different ownership rights and priority claims on proceeds, with common stock held by founders and employees being last in line to be paid, while preferred stock grants priority to investors.
• Capitalization TablesA master ownership ledger that documents what percentage of the company each founder, investor, employee, and advisor owns through their share holdings.
• SAFEs and Convertible NotesFinancial instruments that allow early-stage companies to raise money quickly by deferring the valuation question to a future priced equity round.
• Choosing the Right Funding Source for Your StageThe strategic decision of selecting which type of capital provider and financing method best matches a company's development stage, proof of traction, and acceptable tradeoffs in dilution or obligation.
• Venture Capital Firms and How They OperateA VC firm is a structure in which General Partners manage capital committed by Limited Partners (institutional investors and wealthy individuals) and make investment decisions in exchange for management fees and carried interest, with incentives shaped by their compensation structure.
• Board of Directors and GovernanceA small group with formal legal authority to oversee major company decisions, initially composed of founders but expanded when outside investors negotiate board seats in exchange for their investment.
• Financial Projections and ForecastingEstimated numerical forecasts of a company's future revenue, expenses, and cash position over 12 to 36 months that translate business strategy into concrete financial assumptions.
• RunwayThe number of months a company can continue operating before running out of cash at its current spending rate.
• Sourcing and Building Investor RelationshipsThe process of identifying investors that fit your company's stage and sector, and establishing credibility with them before pitching.
• Down Rounds and Difficult Fundraising ScenariosA financing round in which a company raises capital at a lower valuation than its previous round, typically resulting from underperformance, market conditions, or other company-specific factors.
• Fundraising Timeline and Process ManagementA structured sales process with distinct phases and sequencing that founders must manage to close a funding round on schedule, as successful raises typically take longer than founders initially expect.
• Negotiating with InvestorsThe process of reaching agreement with investors on valuation, control rights, and deal timing while balancing multiple competing interests rather than optimizing for a single dimension.
• Legal Entity FormationThe process of establishing a legally recognized business structure—typically an LLC or C corporation—that separates personal assets from business liabilities and creates a vehicle for issuing equity to investors.
• Venture DebtVenture debt is a specialized loan or credit line available to venture-backed startups that must be repaid with interest regardless of business performance, structured as either a term loan or line of credit and offered by lenders who evaluate borrowers based on their VC backing and growth trajectory rather than traditional collateral.
• How Venture Capitalists Think and Evaluate DealsThe framework by which venture capital firms, which must return multiple times their fund to limited partners within 7-10 years, identify startups capable of outsized returns rather than simply solid businesses.
• Bank Loans for StartupsDebt financing arrangements where banks lend money that must be repaid with interest regardless of business success, generally unavailable to early-stage startups lacking predictable cash flow and collateral.
• Investor Rights and Control ProvisionsContractual rights negotiated by investors that protect their investment and give them influence over company decisions, such as board representation, voting power, and veto rights over major transactions.
• Crafting and Delivering an Investor PitchA persuasive, time-compressed argument delivered through a visual deck and verbal narrative designed to convince an investor to take a next meeting rather than provide exhaustive business details.
• Angel InvestorsHigh-net-worth individuals who invest their own personal money into early-stage startups in exchange for equity or convertible instruments, typically at the pre-seed or seed stage before venture capital firms enter.
• Priced Equity RoundsA funding round in which the company and investor agree on an immediate valuation and issue actual shares of stock to the investor at the time of investment rather than deferring the valuation question to a later date.
• Grants and Non-Dilutive FundingMoney awarded by government agencies, corporations, or foundations that you do not repay and that does not require giving up equity or taking on debt.
• Stock Options and VestingThe right to purchase company shares at a fixed price, used as equity compensation to attract talent to startups and align employee interests with company success over time.
• Bootstrapping as a Funding StrategyA method of funding a startup using personal savings, business revenue, and personal credit rather than outside investment, allowing founders to retain full ownership and control.
• Friends and Family FundingCapital raised from people who know you personally, based on trust in you rather than rigorous business analysis, and typically the first outside money a founder secures before attracting professional investors.
• Equity CrowdfundingA method of raising capital from many ordinary people via the internet in exchange for small ownership stakes in a private company, enabled in the U.S. by Regulation Crowdfunding rules that allow non-accredited investors to participate.
• Follow-On Rounds and Investor RelationsAdditional capital investments by existing shareholders in later funding rounds, supported by ongoing communication with current investors to maintain engagement and facilitate future fundraising.
• Basic IP and Contract Awareness for FoundersKnowledge of how intellectual property ownership and contract clarity are verified during investor due diligence as preconditions for funding, protecting against legal obstacles to capital raises.
• Burn RateThe rate at which a company spends more cash than it brings in each month, determining how long the company can operate before needing additional funding.
• Liquidation PreferencesA contractual right that guarantees investors receive their money back before common stockholders when the company is sold, merged, or liquidated.
• Unit EconomicsThe analysis of revenue and costs for a single repeatable unit of business, typically one customer, to determine whether each additional customer adds value or costs the company money.