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Y Combinator Startup Podcast cover image

How Startup Fundraising Works with Brad Flora | Startup School

Y Combinator Startup Podcast

NOTE

The Reality of Startup Funding Rounds

The rounds of funding that make the news are typically series A and growth rounds, while the actual early fundraising of startups goes unnoticed./nSeed rounds are much smaller, typically ranging from $500,000 to a couple million dollars, and can be closed quickly with no legal fees./nThe creation of the Safe Simple Agreement for Equity (Safe) by YC in 2013 revolutionized fundraising for startups, as it became the standard document used by all startups to raise money./nUsing a Safe is advantageous because it's easy to understand, fast to close, and only requires discussion of a few key terms like the amount of investment and valuation cap./nSafe agreements are also cost-effective, eliminating the need for lawyers during the process.

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