The Legal Behind Early-Stage Fundraising
Scott is a partner in the VC and startup group at McCarter & English. Scott and his colleagues are a top-ranked VC practice according to Pitchbook and do over 200 startups fundraise annually. Scott lectures in VC and startup programming with Columbia Business School and MIT is a mentor in a variety of accelerators, and has provided early and growth stage legal counsel to hundreds of startups.
Convertible Debt, SAFEs, Series Seed, Crowdfunding, and so on and so on. The legal terminology and methods of raising early-stage capital are endless and confusing. In this session, we will break them down into digestible concepts, explain early-stage fundraising methodologies and costs, and help you understand what those legal docs say and which are best to use for a particular circumstance.
- Consider time, cost, and capital being raised when selecting the legal style of your fundraising. SAFEs or Convertible Debt are best for raises under $1MM.
- Raise only from accredited investors, and have written agreements with everyone.
- Raise a class of preferred equity, and convert your debt/SAFEs into that Series Seed or Series A.