We aim to be conservative in our financial modeling to avoid surprises and ensure we can exceed expectations.

We try to narrow down our focus to areas where we believe we have a greater competitive advantage, avoiding investments that involve product risk.

Understanding the mechanics of dilution and cap tables is essential for founders to navigate the fundraising process effectively. I hope this will not be anything new to you as we discuss raising money on post-money SAFEs and what happens as you hire people and issue equity to employees.

In March 2022, we faced a significant challenge when capital markets fell, and we had to create as much efficiency as possible to survive against competitors with much more cash.

It's crucial for founders to understand their dilution when raising money through SAFEs or convertible notes, as they may end up owning significantly less of the company than expected after a priced round.

We had to build financial controls and go through audits to secure capital, which was critical for our survival against competitors with substantial cash reserves.

Investors should exercise their pro-rata rights to maintain their ownership percentage during subsequent funding rounds, as early investors can face significant dilution otherwise.

We structured our financing to generate attractive returns for investors while using the capital raised to operate the business effectively.

When we approached our investors, we clearly communicated that our intent was not to use most of the capital raised for funding receivables, but rather to create a financing solution that allows us to operate effectively.