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Priced fundingUncapped Convertible
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First funding
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iInvestor A puts $250,000$250,000
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iiAt a pre money valuation of$1,000,000No valuation discussions
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iiiImplies post money valuation is (i+ii)$1,250,000
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ivSeed investor ownership is20%0%
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Founder ownership is80%100%
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Investor A ownership = i/iiiInvestor A ownership is zero - no dilution for founder
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Next funding
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vInvestor B puts$5,000,000$5,000,000
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viAt a pre money valuation of$20,000,000$20,000,000
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viiImplies post money valuation is (v+vi)$25,000,000$25,000,000
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Investor B ownership is (v/vii)20%20%
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Investor A ownership is16%1.3%
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Founder ownership is64%79%
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Investor A and Founder ownerships get diluted by 20% (share of new investor)Investor A gets equity at pre-money valuation in exchange for the $250K convertible cheque. Founder retains overall higher ownership despite receiving same amount of money in both scenarios
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Founder gets
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Higher ownership of company
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Simple termsheet - no more time spent in debating valuations during the formative days of your company
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Mentorship from other founders and peers in the seed investor's ecosystem
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With Accel Atoms, additional benefits are
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Transparency - see the termsheet before you even apply for the program
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Uncapped convertible - we do not put any upper limit on next round valuation
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Access to an extensive ecosystem of visionary founders and peers
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