What Is a Down Round in Startup Funding?

A down round is a round of financing in which the company is valued lower than the previous round. Ideally, a startup will increase its valuation at every financing round. For example, normally a company might be valued at $50 million for its Series A, then $150 million for its Series B. If a company…

Can Our Startup Raise Money from People Who Are Not Accredited Investors?

When founders are raising money to get their startup off the ground, the Securities and Exchange Commission (SEC) is not typically on their mind. But this agency has a profound impact on who startups can receive investments from. If you sell shares of stock in a company, you either need to register the offering with…