How do I set my fundraising terms?

Raise Amount

The fundraising goal you select is a very important decision. You should be optimizing toward an amount that is sufficient to achieve your stated goals, but low enough so that you can meet or surpass your stated goal. Equity raises start at a minimum of $10,000 and can go up to $10 million.


Duration

Your fundraise can last as long as you wish. You will have to pay a monthly hosting fee in order to keep your profile up on our site. Typical equity fundraise is at least 60-90 days.


Valuation

The valuation is the proposed value of the company at the time of the investment. Be sure to include the amount that you are proposing to raise in your total valuation (also known as a "Post Money Valuation"). For Example, if you are valuing the company at $750,000 and are raising $250,000, the valuation is $1 million. Investors are getting 25% of the total value including their investment.


Equity or Convertible Debt

Some startups raise their first equity round using straight equity, which means investors get a share of the business at a predetermined valuation when they invest. Another option, Convertible Debt, is a slightly different instrument that implies that a valuation is not set right now, but will be set at a later date -- like when another round of capital is raised, for example. 


Deal Terms

You can provide additional deal terms to potential investors on your fundraise profile, like your set Valuation Cap (on a Convertible Debt raise). 


We recommend you consult your attorney to determine what deal terms are best for you and your company.


You can also check our sister site Clarity.fm where you can find a lot of experts who are qualified to help you with what best steps to take with the legalities of your fundraising.