Top 4 Things to Consider when Raising Venture Capital

No. 3: Learn the lingo

Like any other financial endeavor, raising venture capital is a process filled with notions, concepts, and terms that may be difficult to grasp at first, in the absence of any economic background. In order to ensure that you know what you’re doing, take the time to familiarize yourself with the field of venture capital. Learn about pre-money and post-money valuation, convertible debts, capped and uncapped notes, stock, liquidations, and pro-rata rights. This knowledge will help you navigate the treacherous waters of raising venture capital.