Carta Collective

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  • 1.  Community Event: Ask a Startup Lawyer Anything about Raising Capital

    Posted 24 days ago
    Hello Carta Community,
     
    We're thrilled to announce an upcoming event that's sure to be a game-changer for entrepreneurs, startup enthusiasts, and small business owners. Join us for an exclusive Q&A session with @Alex King, lawyer and founder of Archetype Legal, as he shares his expertise on the topic of raising capital.
    Got any questions or topics you'd like Alex to cover during the event? Feel free to drop them in the comments below!
     
    Event Details:
     
    • This event takes place entirely in the Carta Community workspace, and does not have a virtual video component
    • Look for a new thread at the time of the event where the AMA session will be held
    • Thursday, November 16th
    • 11:00 AM PST
    What's in Store?
     
    Are you curious about how to secure the funding your startup or small business needs to thrive? Whether you're exploring angel investments, venture capital, or other financing avenues, this event is tailor-made for you. Here's what you can expect:
     
    Expert Advice: Alex King brings his wealth of experience to the table, offering insights on the legal aspects of raising capital
    - Your Questions, Answered: This is your chance to ask any burning questions about the legal intricacies of fundraising. Get clarity on the process and legal requirements
    - Actionable Insights: Walk away with practical knowledge that will empower you to make informed decisions for the financial future of your venture
    Networking: Connect with like-minded entrepreneurs and business owners. Share your experiences and learn from others
     
    Don't miss out on this incredible opportunity to take your startup or small business to new heights with the wisdom of an expert startup lawyer. We can't wait to see you there!
     
    Feel free to share this event with anyone who might benefit from it. Let's make this an event to remember!
     
    See you on November 16th,


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    Brent Devey
    Community Manager
    Carta
    Salt Lake City UT
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  • 2.  RE: Community Event: Ask a Startup Lawyer Anything about Raising Capital

    Posted 15 days ago

    I have a question for Alex:

    We are a pre-seed startup looking to raise capital to get us through launch. We have a deep-pocketed acquaintance who has signaled they are interested in contributing a significant amount in exchange for equity (let's say $500K for 10%). They are not interested in using a SAFE or convertible debt and are OK with all of the equity being issued from Common Shares. This is a great problem to have, of course, but I'm concerned that this could adversely affect our 409A valuation when we go to issue options for our first round of hires.

    Are there any strategies we can use to minimize the impact on our 409A?



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    Nico Escalante 
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  • 3.  RE: Community Event: Ask a Startup Lawyer Anything about Raising Capital

    Posted 15 days ago

    Thanks for your question, Nick! I'll make sure to share it with Alex during the event on Thursday.



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    Brent Devey
    Community Manager
    Carta
    Salt Lake City UT
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  • 4.  RE: Community Event: Ask a Startup Lawyer Anything about Raising Capital

    Posted 14 days ago

    Thanks, Brent! Will this be recorded? Unfortunately I won't be able to attend until 2:30 ET 



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    Nico Escalante
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  • 5.  RE: Community Event: Ask a Startup Lawyer Anything about Raising Capital

    Posted 14 days ago

    The AMA will play out in a thread here in the community and doesn't have a video component. Check back when you've got some time and you'll see a thread with your question in it!



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    Brent Devey
    Community Manager
    Carta
    Salt Lake City UT
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  • 6.  RE: Community Event: Ask a Startup Lawyer Anything about Raising Capital

    Posted 14 days ago

    Hello, thank you for hosting this event!  Can you please add the question below to the queue for Alex!?

    We are a medical device pre-seed startup (incorporated, but need to draft governance docs including stock purchase agreement and equity incentive plan) with about $300k of prospective Safe investors lined up once we formalize that process.  The question relates to equity for our initial team.  There are 2 primary Founders and 3 people who have been involved from early planning days and will likely be considered much smaller Co-Founders  but will need to provide ongoing services to the Company to support the initial equity grant.

    We are contemplating  Founder Shares + ~20% incentive pool (EIP) pre Safes.  All shares will need a vesting schedule, including Founder shares.  But... would you consider including the 3 smaller Co-Founders in Founder Shares or in the EIP?  If in the EIP, it seems like they will eat up a decent amount of the 20%.  Are Founder Shares typically structured with different terms than EIP shares?

    Thanks for any insights that you can provide!



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    Jerry Levin
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  • 7.  RE: Community Event: Ask a Startup Lawyer Anything about Raising Capital

    Posted 14 days ago

    Got it! Thanks for your question, Jerry!



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    Brent Devey
    Community Manager
    Carta
    Salt Lake City UT
    ------------------------------