EP 66 - The Founder’s Guide to Convertible Notes, With Liz Sigety

In this episode, Liz Sigety, chair of Fox Rothschild's Emerging Companies and Venture Capital practice, shares her expertise in working with startups, her role as a co-founder of the Delaware Crossing Investor Group, and her extensive experience as an angel investor.Tune in to hear Liz's thoughts on funding mechanisms for early-stage companies, how to pick the right funding vehicle, the differences between SAFEs and convertible notes, and what founderss should think about in selecting the right one for their raise.Get a deep dive on the Angel Capital Association's new Model Convertible Note straight from the source! Liz headed the team at the ACA that worked to develop and publish this comprehensive new template!Hear Liz's thoughts on: The critical factors that drive your choice of funding vehiclePrimary differences between SAFEs and convertible notesHow legal fees impact your choice of funding vehicle, and what ti keep in mindThe little known tax issue that can make or break your deal for investorsWhy tax matters for you as a founder, and how ti minimize your tax riskHow the ACA's new model convertible note changes the game for founders and investorsThe make or break features of your convertible note: discounts, valuation caps and maturityThe "iceberg" factors of convertible notes: early sale, board representation, information rights and moreHow to put together a foolproof term sheet as a first time founderInsider tips for women founders in STEM from an experienced angel and attorneyand much more.Only on Invisible Ink!

In this conversation, Vicki Knott, CEO of Crux OCM, shares her entrepreneurial journey from oil and gas to starting her own company. Vicki describes her background and how she met her co-founder, Roger Shirt, and how they developed the idea for Crux OCM. Tune in to listen to her facscinating journey as she shares her thoughts on:The power of cross-pollinating ideas - origin story of an innovative startupThe difference between working and selling in the same industry - powerful founder lessonsFirst steps - why accelerators matter in your startup journeyHow to select the right accelerator program for your deep-tech startupWhy location matters - and how to make a smart location decisionThe surprising power of financial acumen - from fundraising to sellingHow to build financial acumen one day, one step at a timeHow to navigate the challenges of selling complex software solutions to large, traditional industries.  Valuable do's and don'ts in the journey to financial fluencyHow to build confidence and overcome imposter syndrome as a female founder in a male-dominated field.  and much more!

Join us for a fascinating conversation with Kameale C. Terry, Co-founder and CEO of ChargerHelp! In this conversation, Kameale shares her entrepreneurial journey in the electric vehicle (EV) charging sector, detailing her transition from supporting EV drivers to founding her own company focused on enhancing charging reliability. Tune in to find out:How to transform life circumstances into entrepreneurial opportunityThe single biggest secret to sustainable startup successHow to leverage problem mastery to gain investor credibilityHow to play the fundraising game like a chess proThe oath to financial fluency, why it matters, and how to get itThe ins and outs of raising a priced roundHow to find great legal counsel before you have fundingWhat Henry Ford can teach you about go-to-market successHow to make smart bets when the stakes are highThe last word: how to stay in the game for the long hauland much more!

In this episode, Tasneem Dohadwala, a venture capitalist in early-stage medical device investment, shares her insights on navigating the venture capital landscape and the unique challenges within the medical devices space.Check out this information-packed conversation to learn more about:The categories of med-tech ventures, and how they differWhy large markets have outsize importance in med-tech relative to other verticalsWhat factors drive fundability in med-tech, and why it's so challenging to build successful ventures in med-techNot all med-tech is made equal - categories within med-techHow AI will change the game in therapeuticsHow to tell if your med-tech startup has what it takes to be fundedHow the regulatory and reimbursement pathways make or break your startup's success How to be a CEO investors want to bet onWhat to watch for as a woman founder in med-techand much more!

In this episode, Brianna McDonald, an experienced early-stage investor, shares key insights from her two-decade journey in the startup world, emphasizing the significance of a well-crafted capitalization strategy for founders. Brianna discusses the importance of not falling in love with the product alone, instead focusing on the executive team's execution and the market potential.She highlights the misconceptions around fundraising, urging founders to view it as selling pieces of their companies, and stresses the necessity of understanding cap table management from day one.She also covers the current challenges in the investing landscape, the impact of economic shifts on startup funding, and the critical need for thorough market research and relationship building with potential investors.Key takeaways from the episode include:Why capitalization strategy matters for founders more than ever in the post Silicon Valley Bank eraHow to use market research to create credible go-to-market strategies and believable financial projectionsHow to cultivate genuine relationships with investors for successful fundraising and support Why managing and understanding the cap table from day one is key to minimizing dilution and maintaining control What to watch out for before raising on "cheap" vehicles like SAFE notesHow to target the right investors based on your company’s growth trajectory.Why the math matters - on your cap table, your valuation and your deal, and how it can make or break your companyHow to build a solid plan for your startup so your company, your investors and you come out ahead

Named one of Inc. Magazines Top 100 Female Founders of 2020, Colette Courtion is a distinguished and award-winning consumer marketer, inventor (24 issued patents), and business leader steeped in brand building, marketing, strategic planning, and finance with leading consumer product, retail, and medical device companies.She is the founder of Joylux, the leading menopausal intimate health company with Halle Berry, the acclaimed actress and menopause advocate, as an investor, brand ambassador and co-developer of products.Prior to founding Joylux, she founded and lead two other VC-backed aesthetic companies. She was also a marketing executive with Starbucks responsible for launching and growing the Starbucks Card and Customer loyalty program into a multi-billion-dollar business. In this episode, Colette shares the good, the bad and the shocking on her founder journey. Tune in to hear more about:The origin story of a pathbreaking startupHow to validate the market opportunity when it's never existed beforeHow to break old barriers and blaze new trails - the founder's wayThe quick primer on FDA approvals, and the role of luck and ingenuityWhen life hands you a pandemic, turn it into profitsHow to think strategically about your IP strategyHow to sell your startup to investors when they don't want to hear about the problem, and still win!How to keep investors happy without losing your mindHow to hitch your wagon to a starand much more!

Welcome to the Best of Season 6! In this special episode, we've put together the very best clips from all of our incredible guests for your listening pleasure. Check out the time stamps below to find your favorite clips or do yourself a favor and listen to the whole roll!00:00:00 - Welcome & Introduction00:00:09 - Gender Bias in Negotiation Techniques | Angela Lee00:00:32 - Handling Perceptions of Aggressiveness | Angela Lee00:01:52 - Balancing Strength and Warmth | Angela Lee00:02:42 - Building Economic Case for Women Founders | Angela Lee00:03:04 - Valuation Tips for Women Founders00:05:13 - Importance of Conviction in Investor Pitches | Marcia Dawood00:07:05 - Value of Customer Discovery | Marcia Dawood00:08:05 - Navigating Co-Founder Challenges | Marcia Dawood00:12:21 - From Technical Expert to Business Lead | Jen Baird00:16:17 - Strengthening the Financial Model | Jen Baird00:17:44 - Advice for First-Time Fundraisers | Jen Baird00:19:14 - Differences Between Angels & VCs | Elaine Bolle00:23:08 - Strategies for Valuation & Fundraising | Elaine Bolle00:27:00 - Common Business Model Pitfalls | Gwen Edwards00:29:30 - Scaling & Growth Essentials | Gwen Edwards00:32:38 - Managing Cap Tables Effectively | Gwen Edwards00:41:40 - Financial Education for Founders | Kerry Rupp00:42:45 - Understanding Investor Timelines | Kerry Rupp00:43:24 - Building Toward Acquisition Goals | Kerry Rupp00:45:11 - Importance of Legal Structures in Startups | Madhu Singh00:47:22 - Equity Vesting & Founder Commitment | Madhu Singh00:48:39 - Setting up an Option Pool & Incentives | Madhu Singh01:00:47 - Raising Capital Efficiently | Charu Ramanathan01:02:43 - Overcoming Gender Bias and Seeking Help | Charu Ramanathan01:04:12 - Mentorship & Resilience for Female Founders | Charu Ramanathan01:04:25 - Lessons from the Entrepreneurial Journey | Vinita Gupta01:04:51 - Embracing the Owner’s Mindset | Vinita Gupta01:05:42 - Balancing Risks and Rewards | Vinita Gupta01:12:35 - Navigating Career Choices with Intuition | Lynda Weinman01:13:43 - Evolution of an Internet-Based Business | Lynda Weinman

In this episode, Madhu Singh, a seasoned legal expert, shares her insights on the importance of preparing for an exit when building a startup. Tune in to find out why founders need to prioritize legal structure, the ins and outs of devising a smart equity compensation structure, how to ace due diligence to avoid common pitfalls, and much more. Highlights include:Why entity structure matters, and what to do if you didn't form a Delaware C CorpHow corporate structure can impact hiring your team and fundraisingHow to grant equity to your team the smart wayWhy dead equity can come back to haunt you, and how to fix itHow to prepare for due diligenceSimple tips to stay on top of your entity and legal obligationsand much more!

Our guest for today is Lynda Weinman. Lynda is a pioneering entrepreneur, educator, and co-founder of lynda.com, a trailblazing online learning platform. Lynda launched her namesake platform in 1995 with her husband, Bruce.Her leadership and vision led lynda.com to tremendous growth for years before raising its first venture capital funding in 2013. In 2015, she sold the platform to LinkedIn for $1.5 billion for cash and stock, marking one of the most successful exits of a woman-founded startup.In this fascinating conversation, Lynda provides an insider’s view of what it’s like to bootstrap a company from scratch, all the way through the challenges of high growth and selling the company. Tune in to hear her rich and thoughtful take on:What led her to start her company, and what guided her growth decisions through her journeyThe real decision you make when you decide to take on outside investorsWhat it feels like to lose control even when you're the "majority" shareholderThe bittersweet experience of going through a life-changing exitand much more!A can't miss conversation every first-time founder MUST listen to!

In this episode, Marcia Dawood, angel investor, Chair Emerita of the Angel Capital Association, and author of the recent bestselling book, "Do Good While Doing Well", discusses her journey into the world of angel investing and the critical lessons she’s learned along the way.Tune in to listen to her accessible and friendly perspectives on: How to tell if your business is scalableHow to develop a credible market size estimate that investors will buyPros and cons of going it alone versus finding a teamHow to pitch even a highly technical idea so investors get excitedHow to ensure you're building a product that has real buyersHow to handle financial projections and models, especially if you're a nonfinancial founderHow to tell if crowdfunding is the right path for your startupHow to find, connect with and evaluate potential investors for your startupHow to say no to investors who aren't a good fit for you or your startupActionable tips for effective investor outreach you can implement tomorrowand much more!