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Training Guide

Startup Funding Stages


Training Guide

Startup Funding Stages

Venture Financing
Remote or in person

What’s Covered

  • Founder funding
  • Family and friends round
  • Angel round
  • Early stage venture round
  • Later stage venture round and exit

Before the Session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

  • still frame from Friends & Family Investments


    Startup Funding Stages

    A company goes through several funding stages as it moves from formation to exit. This course takes a look at each of them and their impact on a company and its founders.

  • Icon of a document


    Startup Funding Stages


During the Session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

  • What are the different rounds in a startup’s lifecycle? How much is typically raised in each round?
  • How is a founder’s vesting schedule structured and what are some common variations?
  • What’s the difference between an angel investment and an early-stage venture round?
  • What’s an alternative to raising capital in an angel round?
  • When should a convertible note be used versus preferred stock?
  • How much equity is typically exchanged in the different funding rounds?
  • What’s a “down” round?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

  • Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
  • General practice tips (dos and don’ts)
  • Firm-specific guidance and practices

After the Session

To continue their learning, attendees can check out related courses in Hotshot’s Venture Financing topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.

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