Education

What to know when you're raising.

📚 Glossary

The AngelList Education Center (learn.angellist.com) has detailed articles that go over the structure and implications of many traditional VC terms. Click on any link below to read more.

What is a SAFE?

SAFEs give an investor the right to convert their SAFE into equity at the company’s next equity financing round or liquidation event.

What is a SAFE? | AngelList Education CenterAngelList

What is a liquidation preference?

Liquidation preferences dictate the order and amount investors get paid when there's an exit.

What is a Liquidation Preference? | AngelList Education CenterAngelList

What is an SPV?

SPVs allow investors to pool their money together to invest in a single company.

SAFEs give an investor the right to convert their SAFE into equity at the company’s next equity financing round or liquidation event.

What is an SPV? | AngelList Education CenterAngelList

What is a convertible note?

Convertible notes are a type of loan that gives investors the right to convert their debt into equity at a predetermined event.

What is a Convertible Note? | AngelList Education CenterAngelList

What are pro rata rights?

Pro rata rights can help investors maintain their ownership stake in a startup as it grows.

What are Pro Rata Rights? | AngelList Education CenterAngelList

What is anti-dilution protection?

Anti-dilution provisions help protect investors’ shares from losing value in a ‘down round.’

What is Anti-Dilution Protection? | AngelList Education CenterAngelList

What is a right of first refusal?

A right of first refusal gives its holders “first dibs” on any share sale in a startup.

What is a Right of First Refusal? | AngelList Education CenterAngelList

What should I know before raising my first round?