BUS 314 Lecture Notes - Lecture 5: Capital Structure, W. M. Keck Observatory, 18 Months

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 314
• Professor: Andrew Harries

Document Summary

Loans can be converted into equity at certain point in the business"s life: fast way for founders to raise money, equity, holders" ability to access portions of a company"s future profits, common shares. Fall 2020: startup typically issue common shares early as a simple way to represent the value of the company to founders, employees, and early investors. Set goals for next 12 18 months and put in timelines for the specific milestones you wish to reach, then calculate how much money you will need to accomplish those milestones. This is what i need [ideal # based on what you think will be key milestones], but this is what i can accomplish [1/2 other meaningful milestones behind the big one] with this [smaller #] capital. Give up 10 -30 % dilution per found. Investors will be part of the life and leadership of your startup. Step 4: create and follow your funding roadmap.