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Decoding Equity And Convertible Notes - Startups 101 

Slidebean
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Ready to pitch to investors? We can help ►
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More videos for startup founders:
How to Make a Pitch Deck for Investors - Startups 101 ► • How to Make a Pitch De...
Seed Funding: How to Raise Venture Capital - Startups 101 ► • Seed Funding: How to R...
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Understanding stock, preferred stock, options, convertible notes, angel investing, venture capital, and other fundraising instruments can be truly overwhelming.
If you are an early-stage startup company in the tech space, the best way to raise capital is with a convertible note or a similar instrument. However, to understand how those work, we first need to understand how stock works.
#startups #fundraising #venturecapital #slidebean #startuplife
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About Slidebean
Slidebean is a platform for founders to scale their startups. Our platform offers everything you need to build your startup, your pitch deck, set up your company, and start gaining traction.
Our team of experts can also help you write and design your pitch deck and build the financial model for your startup.
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Caya
Twitter: / cayahere
LinkedIn: / caya

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20 фев 2019

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Комментарии : 755   
@slidebean
@slidebean 4 года назад
Last year, companies using our pitch decks raised $300M+ in venture capital. Here's how we can help you ►slidebean.com/?
@lekantaiwo
@lekantaiwo 4 года назад
am trying to find a book you posted that has directories to american investors
@lamaalzahrani984
@lamaalzahrani984 4 года назад
lekan taiwo is there any book like so? Please help
@abdulsiyanbade2828
@abdulsiyanbade2828 9 месяцев назад
unless I misunderstood this, I think there's a mistake at 12:00. I believe Gus should be 75,000 shares while Madigral would then be 21,500 shares. Great content though! Learned a lot here.
@ahmedcine
@ahmedcine 7 месяцев назад
AbdulSiyanbade, I thought so, too. Excellent content, all the same.
@optionstrader1939
@optionstrader1939 4 года назад
I’m a VC/IPO/M&A lawyer and was looking for some easy videos to explain startups, VC funding, etc. to my 18 year old daughter who is beginning business program at college. This video and this entire series is excellent. I also used to teach this stuff at MBA/Law school and explaining these things in a concise and easily understandable way is not all that easy. Great job to the Slidebean guys. And yes, as you mentioned in another video, what you have done with your company and technology is amazing even if you did not displace PowerPoint, etc. Congrats on your success and on eventually figuring who you really are and what your market is. Sadly, most tech entrepreneurs never make it that far.
@slidebean
@slidebean 3 года назад
Thanks! :)
@techie2103
@techie2103 3 года назад
@@slidebean hi can you explain about class a shares vs class b shares ?
@tetroblanco3509
@tetroblanco3509 2 года назад
How can I reach you if I have a possible Unicorn Startup
@captainkip4624
@captainkip4624 2 года назад
Man isn't that the truth. It took us 3 maybe 4 years to figure out who our customer was. This an excellent knowledge transfer throughout the series and highly recommend them. I also started playing with the app. There is a lot of potential here.
@optionstrader1939
@optionstrader1939 2 года назад
@@tetroblanco3509 Hi. Sorry for delay in replying. I dont use RU-vid all that much so I just saw this. Unfortunately I’m way too busy to help any more companies, but I appreciate you thinking of me.
@fumbio2718
@fumbio2718 4 года назад
This feels like a MBA class in 15 mins brilliant
@cayahere
@cayahere 4 года назад
Fumbi O funny thing is… I didn’t even study business.
@ogorchukwuofili7319
@ogorchukwuofili7319 3 года назад
Tbh!
@blanche1935
@blanche1935 3 года назад
Caya I am studying business, but honestly you don’t have to. Specially, when you have previous experiences of founding companies such as your case. In fact, your experiences in this channel are invaluable and it’s something that I have not acquired from any classes. So thanks a lot for the content! :)
@ibukontraktor2783
@ibukontraktor2783 3 года назад
No it doesn't.
@drgLACity
@drgLACity 3 года назад
Anyone want to invest on my start up?
@BelindaAng
@BelindaAng 5 лет назад
The most effective explanation I've come across! Have subscribed! Looking forward to your view on vesting.
@slidebean
@slidebean 5 лет назад
Thanks for subscribing, knowing that our content is being valuable to you guys makes our day!
@cayahere
@cayahere 5 лет назад
Glad this helped. It was pretty insane that a clear explanation about these concepts was nowhere to be found.
@awesomethings9712
@awesomethings9712 5 лет назад
It was really very simple easy to understand. Anyways belinda ang are you in china
@awesomethings9712
@awesomethings9712 5 лет назад
Belinda Ang I am foreigner in china too
@BelindaAng
@BelindaAng 5 лет назад
@@awesomethings9712 No, I'm from Singapore.
@kishalayray7570
@kishalayray7570 4 года назад
You are the only one who is delivering these valuable contents on RU-vid love and thanks from India
@cayahere
@cayahere 4 года назад
General Science 🙌🙌
@tainadinapoli7993
@tainadinapoli7993 4 года назад
I so agree
@soultanapapadopoulou2931
@soultanapapadopoulou2931 3 года назад
I'm just stunned by the amount of information your video conveys, things that my four years Bachelor failed to explain in such a simplified and structured way.
@andreajackson4764
@andreajackson4764 3 года назад
I cannot thank you enough for this comprehensive yet approachable lesson! I look forward to watching more of your videos 🙏🏾
@douglasocosta13
@douglasocosta13 3 года назад
This channel is making me fall deep in love with startups, more than I was alredy. Thank you very much for the excellent material!
@gymnastmohamed5809
@gymnastmohamed5809 5 лет назад
Dude you’re the best mentor that i have never got, but seriously man that was the best explanation of equity that i have ever heard thanks!!!
@ayanda1271
@ayanda1271 3 года назад
A new world has been open to me on RU-vid. The clarity is refreshing and is exactly on the subject I need at this stage of my start-up
@quanlynique
@quanlynique 2 года назад
This is beyond wonderful. I actually understand this. I paid a lawyer to break this down and the lawyer didn't even know what they were looking at. This now helps me with making my decision on signing a contract or passing. Thank you so much.
@ACE_77
@ACE_77 5 лет назад
It's funny how much information this 15 min video has, really helpful, thank you and keep up the amazing work
@slidebean
@slidebean 4 года назад
🙌 thanks ACE!
@luiscader
@luiscader 2 года назад
This was surprisingly one of the most accurate and easy to understand explanation of SAFEs and raising Financing. Amazing, well job! super impressed that you have this knowledge at a young age. Great job man!! Will definitely share and subscribe.💯
@saibharathwajsaikannan3783
@saibharathwajsaikannan3783 4 года назад
Pretty much clear! Enjoyed. Looking forward to watching an in-depth vlog on employee stock - pros and cons!
@infinite3397
@infinite3397 4 года назад
This is the best RU-vid University has to offer around start ups. Your content and delivery keeps getting better and better. Much love and support from Chicago!
@slidebean
@slidebean 4 года назад
Thank you so much, Ninja! All the love back to you!
@HS-wd5mp
@HS-wd5mp 2 года назад
Excellent explanation. I’m an entrepreneur and this is exactly what I was looking for. Thank you.
@youjustcalledmewhat
@youjustcalledmewhat 3 года назад
I found this channel by accident and now I'm glad I did. What a gem
@dylandxothomas4132
@dylandxothomas4132 3 года назад
I've been trying to understand this for a looong time and finally, you laid it out in a way that very easy to understand Thank you brotha. I will definitely subscribe and share this content.
@slidebean
@slidebean 3 года назад
You're very welcome! Thanks for the sub!
@hessam97
@hessam97 3 года назад
I haven't seen a more thorough explanation anywhere else yet. This is a great video. Thanks!
@Mykol225
@Mykol225 5 лет назад
Great explanations and production value. Good job!
@cayahere
@cayahere 5 лет назад
Thanks for watching Michael!
@jameskillen6372
@jameskillen6372 4 года назад
Finally!! That was the easiest explanation and tremendously helpful! Thank you! Subscribed!
@benjaminalexofficialgmailc5679
@benjaminalexofficialgmailc5679 4 года назад
James Killen well that’s nice,do you have any idea of digital currency,it really profitable .since it’s at a high rate
@3519Marc
@3519Marc 4 года назад
Thank you , really enjoyed the presentation and was well worth watching. Note on the supercharged round you flipped the values for Gus and Mardrigols position. Gus with the 7 million cap should have a larger amount than Margo with her 1 million investment and 50 million valuation. please check it out thanks again for the video .
@boudjemaanaitkaci8059
@boudjemaanaitkaci8059 4 года назад
Dude you’re channel is definitely the #1 for this matter and your speeches are the best. Keep it up.
@slidebean
@slidebean 4 года назад
Thanks!!
@thesisititi
@thesisititi 3 месяца назад
Never been this clear about a complicated topic before! Thanks for making assimilation easy.
@jorgerangel2390
@jorgerangel2390 3 года назад
Congrats, this is the best video explaining equity in detail.
@davetheman2615
@davetheman2615 3 года назад
My man, you are a superb Educator!! All done in an Easy to understand way. These video's are simply brilliant, and a fantastic Aid to myself and i'm sure others who are embarking on a Tech start up journey, look forward to more video's
@slidebean
@slidebean 3 года назад
Thanks a lot!
@sonydominates
@sonydominates 2 года назад
Awesome video!! I've learned this before, but definitely not this visually compelling and concise manner! Awesome work as usual!
@jayadeepbhat5910
@jayadeepbhat5910 Год назад
Thanks a lot for explaining these terms in such a simple manner mate! 🙏❤️
@EdlyDestinedds
@EdlyDestinedds 2 года назад
This was one of the most informative videos I have ever watched on youtube! Thank you
@robwalker3240
@robwalker3240 3 года назад
Great explanation, I ran here before a start-up interview. Subbed! Thank you.
@mal1que
@mal1que 5 лет назад
Trying to understand Convertible Notes all this while, you just made it super easy for me!!!
@cayahere
@cayahere 5 лет назад
Amazing! Glad it helped.
@chriscowboyfan
@chriscowboyfan Год назад
the ease in which you explain- wow you really know this inside and out- subscribed ! i can you see you over taking that plain bagel !
@andormerks3834
@andormerks3834 4 года назад
Yeah, I love the clarity and your friendliness ... not to mention the 'random' examples: Octopus Car Wash :D :D :D
@donnacooney4426
@donnacooney4426 5 лет назад
Excellent overview - very simple to follow in such a confusing environment
@allencartwright2174
@allencartwright2174 4 года назад
This was amazing video! I've been looking for explanations on understanding start up funding when it come to these terms but there is nothing thanks a lot Slidebean!
@cayahere
@cayahere 4 года назад
Allen Cartwright thanks a lot for watching, glad it helped!
@spiderdog196
@spiderdog196 4 года назад
Brilliant post. Just subscribed. Going to watch every video you guys have. Thank you so much for the time and effort putting it together. Invaluable resources
@slidebean
@slidebean 4 года назад
Thank you sooooo much for your feedback and subscription! Make sure you join Caya on Discord so you can ask him any questions you may have. Slidebean.com/Live
@kafeleboothe
@kafeleboothe 4 года назад
This is great! Though your math at 10:56 is off: 525k/4MM is 13.125% -- but assigning Gus 131.25k shares assumes there was 1MM shares to divy up, but they would've issued new stock for Gus. So he would've had 13.125% of the *new* total (incl. issued), so 151k shares, bringing the total to 1.151MM shares. This is a classic markup/margin calc error, a simple mistake (I didn't touch Madrigals calc, but I'm sure the above would change her numbers as well).
@bronzebond4869
@bronzebond4869 2 года назад
This channel is awesome. Thanks for ALL of this solid content and honestly telling your story. Shout out to the RU-vid algo for sending a good teacher my way
@jeffrobertson6385
@jeffrobertson6385 4 года назад
Wow, thank you, this is a great tutorial. So helpful!!!
@hosseinpro6379
@hosseinpro6379 2 года назад
I watched many YC academy videos before, but your videos are more helpful since zip the most important notes in a short time.
@Tyrell_ai
@Tyrell_ai 3 года назад
Man, your video makes it so easy to understand. Really thank you!!!
@3dmonkey4hire
@3dmonkey4hire 3 года назад
Great video with very clear examples of the process. Well done!
@econgravy
@econgravy 2 года назад
One of the best explanations of the topic ever and anywhere on the internet. Thank you. An instant subscribe hit.
@slidebean
@slidebean 2 года назад
Welcome aboard!
@abdifataahify
@abdifataahify 4 года назад
Great explanation and content. The perfect overview I needed before I start narrowing my research
@slidebean
@slidebean 4 года назад
Glad it was helpful!
@inecosolarsolutions9022
@inecosolarsolutions9022 4 года назад
This looks very good, thanks for sharing the knowledge. Could please explain the number of shares for Gus and Madrigal at 10:57?
@yewiedewie
@yewiedewie 5 лет назад
Great video and very easy explanations. Thanks for sharing.
@prachikhaladkar5818
@prachikhaladkar5818 4 года назад
best video with simple language... thnkuuu!!!
@videom1
@videom1 2 года назад
Excellent summary - so incredibly helpful thank you
@jackeasyapproval
@jackeasyapproval 4 года назад
Great video. I'm starting up a new tech company and i was kind of confused on the vocabularies of investing. Now it is clearer to me thanks to this video. It helped me a lot. I wish you were in my team. Thanks a lot for the information. Great job.
@slidebean
@slidebean 4 года назад
You're welcome Oscar! Keep watching as we cover more and more information that'll help you become more familiar with the terms as we go :)
@ryansmith8201
@ryansmith8201 4 года назад
Great explanations keeping it simple and straight forward. Thank You !!!!
@slidebean
@slidebean 4 года назад
Thanks Ryan! 😉
@benjaminalexofficialgmailc5679
@benjaminalexofficialgmailc5679 4 года назад
Ryan Smith yeah really smart,You thought of investing in bitcoin really profitable you know
@ronnycoding
@ronnycoding 15 дней назад
Excellent class, thanks for the video!!
@12369jp
@12369jp 4 года назад
This is the explanation I've been looking for my whole life!
@slidebean
@slidebean 4 года назад
Wow! That's a big deal! Thank you, Justice!
@garvgoyal2284
@garvgoyal2284 3 года назад
i love how you took breaking bad for reference
@mohammedadel4973
@mohammedadel4973 2 года назад
brilliant , simple and clear!. thanks!
@pierooms1271
@pierooms1271 4 года назад
Simplest explanation to this complex problem. Thanks buddy😊
@slidebean
@slidebean 4 года назад
Thank you for watching!
@saikiranbeesam1367
@saikiranbeesam1367 Год назад
Your videos are the best. Thank you so much!
@atlegilemarketing
@atlegilemarketing Месяц назад
Thanks so much for explaining + providing tools 🔧 @ the end there. This helps us understand the stocks much better as a StartUp in Africa 🌍 💛
@Alex-ll4xm
@Alex-ll4xm 4 года назад
Thank you so much. This has helped greatly
@poproll2709
@poproll2709 4 года назад
seems like I have lot to learn yet... thank you for the quality content
@dmitriysolodukha9646
@dmitriysolodukha9646 5 лет назад
Nice music. Actually almost no one explains how convertible notes work. I had to read lots of sources to get it. Thanks, man.
@cayahere
@cayahere 5 лет назад
Great, glad it helped!
@udayanw
@udayanw 3 года назад
Wow. This was so well explained. Thank you
@slidebean
@slidebean 3 года назад
Issuing a correction/clarification. There's an error on 10:58, the colors and percentages for Gus and Madrigal are inverted.
@IdowuObadeyi
@IdowuObadeyi 3 года назад
Now I'm a lil confused. My understanding is that Gus converted at (525k/4million valuation * 1,000,000shares). So, if that's the case the chart is correct as is. What do you mean "inverted"?
@fredericpette6483
@fredericpette6483 3 года назад
I would suggest that the error is not on 10:58 (the whole slide is fine there) but rather on 11:59: there, indeed, Gus should be credited with 75'000 shares and Madrigal with 21'500.
@rahulhotchandani5639
@rahulhotchandani5639 3 года назад
@@fredericpette6483 this is correct. The error is at 11:59. the graphic at 10:58 is correct.
@rahulhotchandani5639
@rahulhotchandani5639 3 года назад
@@fredericpette6483 Just one question though, 525k investment at 4M pre money should lead to equity of 11.6%, not 9.6%. Am I right?
@fredericpette6483
@fredericpette6483 3 года назад
@@rahulhotchandani5639 You would be right if the capital increase would stop with Gus. However, it is the investment from Madrigal that triggers the convertible note, so you have to go through the capital increase with Madrigal to get the real (final) percentages, which are displayed on the pie chart. In this case (at 10:58), you divide 131'250 by 1'357'500 and get to the indicated 9.7% for Gus...
@RogerJanik1
@RogerJanik1 2 года назад
Amazing job- thank you for creating this valuable content!
@clarkmak714
@clarkmak714 4 года назад
You absolute legend. This was great. I was doing this by reading articles and it was doing my head in. Thank you
@slidebean
@slidebean 4 года назад
You're very welcome :)
@ndakigeorge8147
@ndakigeorge8147 4 года назад
Very eloquently delivered.. very much appreciated Slidebean
@slidebean
@slidebean 4 года назад
Thanks, ndaki!
@smediumlarge
@smediumlarge 3 года назад
I learned things here in this video that I didn't even learn in business school.
@mazdamatt7703
@mazdamatt7703 5 лет назад
Incredible content as always 🙌🏻
@slidebean
@slidebean 5 лет назад
😊 thanks!!
@SAP-lp8qs
@SAP-lp8qs 5 лет назад
Dude you are very good and so explanatory. Good Job
@ChrisPodcasting
@ChrisPodcasting 3 года назад
This is something I thought I'd learn day 1 of business school. I love RU-vid because of content like this!
@gibranmalik
@gibranmalik 3 года назад
Never get an MBA. Let them collapse. God bless corona.
@winterfox7028
@winterfox7028 3 года назад
You explained very well . Enough to start a company .
@ChuckBalsamo
@ChuckBalsamo 4 года назад
Best video on convertible notes! Wow you are such a great presenter. Thank you!
@slidebean
@slidebean 4 года назад
Glad it was helpful!
@TusharVedanta
@TusharVedanta 3 года назад
You explained it so well! Thanks from a first time entrepreneur :)
@iancameron456
@iancameron456 Год назад
Thank you so much for your content, I've learned so much
@vitikahappy
@vitikahappy 3 года назад
Every time I watch this guy leaning forward I have a feeling that his head will pop-up from my screen any moment :-) But great explanation indeed. Thank you.
@kaname110
@kaname110 4 года назад
Super cool and informative video! Thanks a lot!
@dannylevy
@dannylevy 4 года назад
Impressed. I keep trying to explain this to friends. Glad to have found your video. Very well done. Especially the "Breaking Bad" touch. Loved it.
@slidebean
@slidebean 4 года назад
Awesome, thank you!
@vyfvfyvyy
@vyfvfyvyy 4 года назад
Awesome !! U are really helping out guys like me.
@MartinGlastetterJr
@MartinGlastetterJr 3 года назад
Nice work, simply explained, very helpful. Cheers!!
@slidebean
@slidebean 3 года назад
Glad it helped!
@saadiquemerchant
@saadiquemerchant Год назад
Also, thanks for this amazing video. I'm so used to learning alot from your videos that I forgot to thank you guys for putting it up
@jonathansemira2429
@jonathansemira2429 3 года назад
thanks for this!! you made it easy to understand!!
@rockrecon
@rockrecon 4 года назад
Awesome! Great job at explaining.
@stephenbruce5431
@stephenbruce5431 3 года назад
Absolutely amazing explanation! Subscribed!🙌
@slidebean
@slidebean 3 года назад
Thanks for the sub!
@pv0315
@pv0315 3 года назад
wonderful stuff. Many useful pointers - Interest coupon, Discount @ Valuation, Valuation Cap. Nice.
@s78932
@s78932 4 года назад
your videos are amazing! answered some questions I've always wondered.
@slidebean
@slidebean 4 года назад
Thank you for watching!
@anish.wijesinghe
@anish.wijesinghe 5 лет назад
Extremely helpful. Thank you!
@cayahere
@cayahere 5 лет назад
Thanks for watching, Anish. Glad you found it useful.
@josedariolozano4607
@josedariolozano4607 3 года назад
excellent video. Great example of a convertible note
@engineeringoutloud
@engineeringoutloud 5 лет назад
Very Helpful work guys. Kudos.
@cayahere
@cayahere 5 лет назад
Thanks for watching!
@claudiog.7397
@claudiog.7397 3 года назад
Best explanation ever heard. Subbed.
@TaroQuispe
@TaroQuispe 2 года назад
Awesome vid bro, congrats and thanks!
@shoaibbinnoor6847
@shoaibbinnoor6847 5 лет назад
Thanks for the awesome explanation. Want to know more about C-Corp concept.
@thezengineer554
@thezengineer554 4 года назад
You are a top notch teacher. Thank you.
@slidebean
@slidebean 4 года назад
Wow, thank you!
@GibranMalikRecordings
@GibranMalikRecordings 3 года назад
This is a fantastic video, keep this same method of explanations, it works
@CallumHibbert
@CallumHibbert 3 года назад
This is a very good video, you are an excellent speaker.
@waleolapo
@waleolapo 5 лет назад
Thanks guy many of my questions answered in one video. really appreciate your work
@slidebean
@slidebean 5 лет назад
This is awesome!
@cayahere
@cayahere 5 лет назад
You're welcome, dude.
@aymenjaouani8761
@aymenjaouani8761 4 года назад
Thank you so much! That was trenmendously helpful.
@slidebean
@slidebean 4 года назад
We are glad you found it useful!
@balamuralikrishnakrishna4969
@balamuralikrishnakrishna4969 3 года назад
Awesome bro .. Looking for more for startup and functions
@Manishsharma-nb1qw
@Manishsharma-nb1qw 3 года назад
First channel which I’ve subscribed on my interest...👍🏻
@vincentchia7895
@vincentchia7895 3 года назад
Simply brilliant. Thanks a lot
@pedrocecilio3553
@pedrocecilio3553 3 года назад
You’re natural! Thank you.
@chrisbaumann6850
@chrisbaumann6850 3 года назад
Great content Asma'a - apreciated! Just to correct 11:59: Walter/Jesse: 500.000;45.6% //Gus 75.000;6.84%//Madrigal 21.500;1.96%
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