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Startup finance & VC
The vocabulary of venture, decoded for founders and operators: what VCs actually do, how SAFEs and term sheets work, who the major firms are, and where crypto fits into a modern cap table.
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Complete guide
What is venture capital?
Venture capital explained: how funds work, what VCs get for their money, the stage ladder from pre-seed to growth, and what taking VC commits you to.
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What is a16z?
a16z is Andreessen Horowitz, the Menlo Park venture firm founded in 2009 by Marc Andreessen and Ben Horowitz — known for its platform model and crypto arm.
What is Y Combinator?
Y Combinator is the startup accelerator founded in 2005 that funded Airbnb, Stripe, and Coinbase. How batches, the standard deal, and Demo Day work.
What is Sequoia Capital?
Sequoia Capital is the venture firm founded in 1972 that backed Apple, Google, Stripe, and Nvidia. Its history, structure, and what its backing signals.
What is a SAFE note?
A SAFE converts early investment into equity at your next priced round. Valuation caps, discounts, post-money mechanics, and where founders get surprised.
What is a term sheet?
A term sheet is the non-binding summary of an investment's key terms: valuation, liquidation preference, board, pro rata, and option pool. What each means.
What is a cap table?
A cap table is the ledger of who owns what in a company: shares, options, SAFEs, percentages. How dilution works and why fully diluted is the real number.
Seed vs Series A: what actually changes
Seed funds the search for product-market fit; Series A funds scaling proof. Typical sizes, who leads, what metrics unlock the A, and how the bar has moved.
What is venture debt?
Venture debt is lending to VC-backed startups — typically 25–35% of the last round, with warrants. When it extends runway well and when it quietly bites.
What is burn rate?
Burn rate is how fast a startup spends cash; runway is how long the cash lasts. Gross vs net burn, the runway formula, and when to actually cut.
What is a token warrant?
A token warrant gives startup investors rights to a future token launch, typically alongside a SAFE. How allocation, timing, and the SAFT differ.