Glossary

Seed Money

Seed money refers to the funds a startup raises to launch its product or business. It usually comes from friends and family, co-founders, or angel investors in exchange for equity.
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This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

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Dilution
A reduction in the ownership percentage of a shareholder due to the issuance of new shares in the company. As new shares are issued, the proportion of the company each shareholder owns decreases, potentially affecting their control, influence, and value of their investment.
Valuation Methods
Valuation methods are the methods for calculating how much a company is worth now or how much it will be worth in the future.
Advance Subscription Agreement (ASA)
An agreement for future equity, allowing investors to invest in a company now and receive shares in a future funding round.

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