Close Your First Startup Funding-Friends and Family; Step by Step

Рет қаралды 4,949

2 жыл бұрын

How to close a Friends and Family investment, Step by Step. Friends and Family are often the source of a startup's first investment funding. This video walks you though a typical Friends and Family process:
1. Gain credibility by testing your assumptions with customer interviews (customer discovery)
2. Create a legal entity
3. Build your initial team
4. Select a fundable milestone
5 Assess whether your Friends and Family network can fund the milestone
6. Select an SEC exemption - typically Reg. D, 506(b)
7. Select a funding mechanism - probably a convertible note or a Simple Agreement for Future Equity (SAFE)
8. Decide on the terms for the Note or SAFE, including discount, valuation cap, and (for a NOTE) interest rate and maturity date.
9. Draft the legal documents
10. Develop the 'story" for Friends and Family
11. Make the "Ask"
12. The "Ask" is actually a trial close
13. Close - sign documents - deposit checks
(It's not over until the checks all clear the bank)
14. Complete your Federal (SEC) and/or state filings
15. Reach that fundable milestone!

Пікірлер: 8

@legendswithdrnikki 11 күн бұрын

Very informative. Thank you!!!

@2185bridget 2 жыл бұрын

This was a super informative, helpful video. Thank you!

@danmarughu Жыл бұрын

This video is pure gold!! Thanks a lot for putting this together!!

@Startupsos Жыл бұрын

Thanks!

@zenithnc1 Жыл бұрын

Fantastic. This was amazing. Thank you!

@sterlinghairsolutions4714 7 ай бұрын

Thank you

@codypatron5968 Жыл бұрын

Thank you for the channel and videos, and if I had the money I would sign up for your school. I have invested 15k into two of my projects though, but right now I am not working. So wouldn't multiple friends or family be considered crowdfunding? And I need a lawyer before I can receive funding from any source pretty much correct? I am going to see if I can get a free lawyer through legal aid or maybe I can find someone to who will help me in exchange for equity in the company.

@codypatron5968 Жыл бұрын

Oh I'm sorry I thought SOS was also a school or course, but all of your videos are pretty much like a course. Yet I will still need a mentor I do have one from SCORE but they have a lot of people to help and can only spend so much time. Maybe I can go to my local chamber of commerce or even my church to find some help. But I do need to bring in a partner anyhow so maybe all of the above. I am a start-up niche sneaker brand, the niche is connected to graffiti artists and the sneakers will have accents of graffiti on them. So the niche is connected to the arts so I'm sure I can get some grants, but was reading the James L Knight requirements and they're saying that any IP needs to be public, but I am a sneaker brand and need to protect my IP. I have some questions mainly about what my role could be in the company, not sure if I'm qualified to be a CEO. Also have a question about the funding milestone. Can we connect on LinkedIn or through email?