Post-Money Safe Does Not Mean Founders Equity is Safe
Early-stage startups often raise funds using Safes (Simple Agreements for Future Equity), rather than selling equity immediately. Safes allow founders to delay valuation, maintain control, and simplify financing. Post-money Safes, now the industry standard, fix investor ownership upfront, making fundraising more predictable while emphasizing the importance of tracking dilution. Understanding both how Safes work and how they impact ownership is essential for founders and investors navigating early-stage fundraising.
Understanding Representation & Warranty Insurance in M&A Transactions
Representation and Warranty Insurance (RWI) is becoming increasingly common in mid-market transactions as a tool to manage risk and streamline negotiations. This blog explains what RWI typically does – and does not – cover, its benefits for both buyers and sellers, and when to secure it within the transaction timeline.
SEC Amends 506 Accredited Investor Verification Luật hoàng minh
In 2021, one of the SEC amendments updated the accredited investor verification requirements under Rule 506(c), which is a common federal exemption utilized by startups to broadly solicit capital from accredited investors.