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This is the screen where you can describe the details of any investment money you wish to take in from others. As a founder of a start up, you should be aware that only a very few ways exist that the company can get money. To learn about these ways, see the blog post How a Start Up Gets Money? If you have decided to not seek investments to get your company started, you will still need to create what is called a "founders' round." See the answer to the question "Why do I need a founders' round?" below.
For most start-up companies, the entrepreneurs will have no way to know how much money they'll need from investors until they generate the first few iterations of their financial plans. Many users of <php>echo $conf['comp_name'];</php> therefore leave this screen blank initially. They complete all the revenue and expense assumption screens, then determine how much money they need to raise from outside sources (see the blog post How Much Money Should You Ask Investors For?), and then return to this screen to enter the actual assumptions.
The first tab is where you will enter the information about how the founders of your company will (or did) acquire their ownership in the company. This is a necessary step for all companies. For this round, here are the assumptions you need to enter:
What should you do if you have a founders' round after the founding of the company? See Additional Questions below.
Here are the assumptions you need to enter to fully describe each subsequent investment round:
This is the page where you will set up the option pool for rewarding employees (and others) with equity in the company. The first three fields are the most important:
The remaining four fields describe some uses for the option pool other than rewarding of employees:
Just one item to complete on this tab:
How does a start up company get money?
Why do I need a founders' round?
How much money should I ask for from investors?
What is the right timing for investment rounds?
What should my price per share be?
Should I offer common or preferred shares to investors?
Can founders invest in the company after the founder's round?
How do I handle in-kind investments?
Can I pay off a loan with an investment round?
What is a warrant?
How to create a warrant in Offtoa?
Should I get a loan or ask for investments?
How do investors value my startup?
How do I account for funds from Kickstarter?
How do I get more investments to display on each page?