Q
What are the different types of financing structures used to invest in startups?
A
Generally speaking there are two types of financing methods for startup investors to invest in startup: an equity financing and a non-equity financing. Non-equity financings may be done through convertible notes (e.g. using 500 Startups’s KISS documents or other documents) or through convertible securities (e.g. using Y Combinator’s SAFE documents).
