Sign Alaska Banking Memorandum Of Understanding Safe

List table contract

I would like to introduce Kirsty who is going to talk in much detail about safes notes equity and the like Kirsty alright good morning everybody so my name is Kirsty Nathu I'm the CFO one of the partners here at Y Combinator and I have now worked with probably over 1,500 companies in terms of getting them incorporated doing our YC investments and then seeing them through their subsequent raises either on convertible instruments or on equity rounds so I've seen kind of a lot by now and so this this presentation is is to give you some understanding of some of the things that people don't necessarily understand when they're raising money and to hopefully help you avoid some of the pitfalls that we've seen with that some of the mistakes that we've seen founders make so the key the key message in all of this presentation is that it's important that you understand at all stages of the company's lifecycle how much of the company you've sold to investors and in connection with that how much therefore you also own and the thing the thing that makes this complicated is that most companies will raise money on convertible instruments first and because those convertible instruments aren't yet shares is not immediately obvious for a lot of founders how much of the company they've sold so I'm going to talk through some of the mechanics of that and help you understand how all that works so that you don't get surprised when it's too late and you can't do anything about it so the other thing that you should also be aware of is that a lot of companies and a lot of founders will just say oh I don't need to worry about my cap table my lawyers deal with my cap table I don't need to worry and actually that's a really dangerous statement again you should make sure that you're understanding this your responsibility as the CEO or as the founder of the company to understand all of this and there's lots of ways that you can maintain your cap table there's lots of ways that you can you can keep track of this and the simplest form is just a spreadsheet all it's going to show is who owns how many shares and that's it that's all you need at the beginning but there are other services out there that can help and I'll include them on a list of resources after the presentation but the tools like cap table dot IO and Carter which also help for you to keep track of these things ok so these are the these are the three sections that I'm going to talk about first of all I'm going to talk about safes and particularly for US companies most companies will raise money first on safes or some other convertibles convertible instruments which I will talk about briefly as well and I know Jeff mentioned the safe...