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Carolynn Levy

09/20/19

@ Y Combinator

Three major changes in startup financing over the years are the structure of fundraising documents, easier access to these documents online, and a greater focus on minimizing the time spent on fundraising.

Video

Carolynn Levy - Modern Startup Funding

@ Y Combinator

Carolynn Levy - Modern Startup Funding

09/20/19

Related Takeaways

Andy Bromberg

03/09/18

@ Y Combinator

The JOBS Act and subsequent legislation significantly changed the early-stage funding ecosystem, making it easier for startups to raise money and for more people to become investors.

Andy Bromberg

03/09/18

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Companies are becoming cheaper to start and raise funds due to advancements in legal automation and standardization, making it easier for investors to invest.

Carolynn Levy

09/20/19

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The cost of starting a company has decreased significantly, allowing startups to avoid raising large sums just to get off the ground, making the old financing methods less relevant.

Michael Seibel

12/17/21

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Using standard paperwork and hiring a lawyer experienced in startups can help you avoid unfavorable terms during fundraising.

Elizabeth Iorns

08/17/17

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The fundraising landscape has changed significantly, with the median Series A funding now close to $10 million, compared to $3-4 million in the past, raising expectations for startups.

Andy Bromberg

03/09/18

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The rise of convertible notes from 2005 to 2009 allowed startups to raise funds faster as the cost to start a company decreased.

Carolynn Levy

09/20/19

@ Y Combinator

The old fundraising process could take months and cost between $25,000 to $100,000 in legal fees, making it inflexible and burdensome for startups.

Carolynn Levy

09/20/19

@ Y Combinator

I have seen a lot of changes in the startup ecosystem, particularly in how financing is done, and Y Combinator has played a significant role in these changes.

Andy Bromberg

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In the mid to late 2000s, more capital became available for early-stage startups, making it easier to start a company.