Silicon Fund Startup Intelligence

Founder & Investor Guides

Startup financing mechanics, explained plainly

Ten evergreen guides on how equity, fundraising instruments, and deal terms actually work, written for founders and investors who want the mechanics, not the jargon. No gated content, no invented statistics, just the plumbing behind the deal.

01 · Fundraising Mechanics

How a SAFE Note Actually Converts Into Equity

What triggers a SAFE's conversion, how the valuation cap and discount set the price, and what founders should model before signing another one.

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02 · Deal Terms

What Actually Matters in a Term Sheet Beyond Valuation

Liquidation preference, board control, protective provisions, and anti-dilution often decide more than a few points of valuation ever will.

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03 · Equity & Compensation

How ESOP Vesting Works, and Leaving Early

Cliffs, monthly vesting, exercise windows, and exactly what happens to vested and unvested options if you leave a startup early.

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04 · Fundraising Mechanics

SAFE vs Priced Round for Early Founders

What changes in speed, governance, cap table complexity, and valuation certainty between raising on a SAFE and a fully priced round.

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05 · Investor Process

What Investors Actually Look for in Due Diligence

Legal cleanliness, the real cap table, financial accuracy, team dynamics, and how founders can prepare a process that builds trust.

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06 · Cap Table Mechanics

What a Down Round Does to Existing Shareholders and Options

How anti-dilution provisions, underwater options, and stacked liquidation preferences actually play out when a round prices lower.

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07 · Fundraising Mechanics

Convertible Notes vs SAFEs: The Practical Differences

Interest, maturity dates, default risk, and balance sheet treatment: how each instrument actually behaves when growth is slower than planned.

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08 · Investor Process

What Actually Needs to Be in a Startup Data Room

The real checklist: corporate documents, cap table, financials, IP, contracts, and team materials investors expect to see, and how to organize it.

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09 · Cap Table Mechanics

How Dilution Compounds Across Funding Rounds

Why dilution is a percentage of a percentage, how option pool top-ups add hidden cost, and how to actually track fully diluted ownership.

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10 · Deal Terms

Liquidation Preference, Plainly Explained

What "1x non-participating" really means, how participating and multiple preferences differ, and why this term outweighs valuation in many exits.

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