Entrepreneurial Finance and Venture Capital

9.

Scaling and Subsequent Funding Rounds

9.1.

Staging of Capital Infusions

9.1.1.

Rationale for Staged Financing

9.1.2.

Milestones for Each Round

9.1.2.1.

Series A Milestones

9.1.2.2.

Series B Milestones

9.1.2.3.

Series C and Beyond

9.2.

Managing the Capitalization Table

9.2.1.

Modeling Dilution over Multiple Rounds

9.2.2.

Pro-Rata Rights

9.2.3.

Pay-to-Play Provisions

9.2.4.

Impact of Option Pools and Warrants

9.3.

Advanced Financing Instruments

9.3.1.

Convertible Notes

9.3.1.1.

Key Terms and Triggers

9.3.1.2.

Conversion Mechanics

9.3.2.

Simple Agreement for Future Equity

9.3.2.1.

Structure and Use Cases

9.3.2.2.

Valuation Caps and Discounts

9.3.3.

9.3.3.1.

9.3.3.2.

9.3.3.3.

Warrants and Equity Kickers

9.4.

Bridge Financing

9.4.1.

Purpose and Structure

9.4.2.

Conversion Terms

9.4.3.

Risk Considerations

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10. Exit Strategies