Thoughts on startups by investors that
fund them & entrepreneurs that run them

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Should a startup set aside equity?

The first thing you should do is talk to a lawyer who is familiar with setting up startups, rather than trying to handle things yourself. This need not be expensive; at the very high end from a top tier firm, you’re probably talking no more than $5,000, for which you’d get absolutely everything a startup needs.

Typically, since only you

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Are convertible notes typically issued along with stock in Series A?

No, because they are, by definition, two completely different things.

“Series A” is a shorthand way of referring to what is typically the first institutional round of investment in a company, made in the form of purchasing Convertible Preferred Stock. A “Convertible Note” is a loan to the company, in which the principal (and often the interest earned to date)

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