Hardware Podcasts

#84 Legal Tips for Fundraising: Navigating SAFE Notes, Priced Rounds, Exits, & More (+ Balkan Bites)

The Startup CPG Podcast · 28 Mar 2023 · 56m · Episode 61

What this episode covers

Ryan Lewendon, Partner at Giannuzzi Lewendon, explains the legal nuances of fundraising for CPG companies, covering SAFE notes, priced rounds, and exit strategies. He advises founders to start fundraising 7 months early, use pre-money caps to avoid excessive dilution, and carefully select investors to avoid power imbalances and redemption rights. The episode concludes with a mini-interview with Ariana, founder of Balkan Bites, who shares her journey from home kitchen to securing a co-packer and winning a Shelfie Award.

Most relevant to

early-stage companies and companies scaling up

Topics

Mentioned

Companies
Giannuzzi Lewendon, Coke, Balkan Bites, Propeller, VMG, Aura Bora, Mid-Day Squares
Products
Vitamin Water, Smart Water

Related episodes from other shows

Other shows on the same ground, closest first.

  • Product Startup · 37m

    124: Raising $1 Million for a Hardware Startup

    Ryan Lewendon, Co-Founder and Partner at Giannuzzi Lewendon LLP, explains how hardware startups can successfully raise their first million-dollar funding round. He emphasizes the importance of distinguishing between a single profitability-focused round and a multi-round scaling strategy, advising founders to choose investors who understand the industry and structure deals using SAFE agreements or convertible notes to preserve equity. Lewendon also details how to execute on these funds by building human capital to fill operational weaknesses, securing supply chain agreements, and protecting intellectual property to create a competitive moat.

    Fundraising & investorsManufacturing partners & offshoring
    8 chapters

  • Product Startup · 20m

    178: Venture Capital Funding for Hardware Startups

    Toph Day, CEO of Elevate Ventures, shares advice for hardware startups on navigating venture capital funding, emphasizing the importance of clean legal structures and avoiding complex SAFE agreements in favor of convertible notes. He discusses the necessity of building relationships with investors a year in advance and ensuring the firm invests in hard tech at the appropriate stage. Day also highlights the strategic value of partnerships over early hiring and the danger of feature creep, advocating for a 'narrow and deep' product focus to de-risk the development process.

    Fundraising & investorsValidation & product-market fit
    7 chapters

  • How I Built This · 40m

    Advice Line with Eric Ryan of Method returns

    Eric Ryan, co-founder of Method and now a venture investor at Graycroft, joins Guy Raz to advise early-stage founders on branding, product differentiation, and fundraising. He discusses his new $15 million consumer fund and the current challenges of investing in CPG, noting that while starting is easier, scaling to $100M+ is harder. Ryan advises callers on building trust for an allergen-free fragrance brand, creating experiential marketing for customizable kids' flip-flops, and determining when to raise capital for a light-up jewelry startup.

    Direct-to-consumer & e-commerceMarketing & brand
    5 chapters

  • Oxide and Friends · 1h 28m

    Founder vs. Investor with Liz Zalman and Jerry Neumann

    Oxide founders Bryan Cantrill and Steve Tuck join investor Seth Winterroth and authors Liz Zalman and Jerry Neumann to discuss the dynamics of the founder-investor relationship, drawing on insights from their book *Founder vs. Investor*. The group shares personal anecdotes about bad actors in venture capital, such as term sheets being pulled at the last minute, and contrasts this with the supportive behavior of good investors like Eclipse. They offer specific advice on fundraising, including the importance of reference checking, negotiating term sheet expiration clauses, and managing board dynamics to ensure alignment and protect the company's long-term vision.

    Fundraising & investorsLeadership, teams & culture
    7 chapters

  • How I Built This · 50m

    Advice Line with Ariel Kaye of Parachute Home

    Parachute Home founder Ariel Kaye joins Guy Raz to advise three founders: Dane Brown of King Brown Pomade on strategic investment for his men's grooming brand; Deanna Dandino of Mindset Tapestry on securing press for her children's emotional health tool without a marketing budget; and Megan Easterhouse of Palm Folly on navigating gender bias while raising capital for her hard seltzer brewery in a male-dominated industry.

    Fundraising & investorsMarketing & brand
    5 chapters

The summary, chapters and topics are generated from the episode’s audio by this directory, not written by The Startup CPG Podcast. The episode itself belongs to its publisher.