INTRODUCTION
Raising money is essential for the growth and success of
startups, however, this process can be challenging especially for
startup founders who are unfamiliar with the process. One way
startups raise money is through venture financing, so startup
founders must understand the basic concepts involved in venture
financing. Financing is usually done in rounds with each round
involving various elements, the rounds are named in somewhat
abstract ways, such as 'Series A', and 'Pre-Seed'
these terms and other factors involved in the fundraising process
make it appear daunting.
It would be ideal if venture financing was simple and summarized
in a single document. Unfortunately, this is not the case, so the
purpose of this article is to provide a brief overview of the legal
aspects involved in raising venture capital that founders should be
aware of.