We explore the world of startup funding and venture capital. Nareg shares insights on the use of safe notes, valuation caps, and discounts in pre-seed rounds. We discuss the importance of having a product or service with positive revenue when seeking institutional investment and the challenges faced by first-time founders in securing funding. We also dive into how the investor market has changed over the last few years and give advice to anyone looking to raise money from investors. About Nareg Essaghoolian Nareg Essaghoolian is the co-founder of Decrypted Legal & Consulting.  He represents startups from day one at formation through their venture capital financings and exit. Prior to Decrypted, he spent several years at Cooley in Palo Alto, CA, one of the most prominent firms in the industry. He is now back in Los Angeles where he is born and raised working on disrupting the legal industry by being more transparent with pricing and services. EPISODE LINKS Nareg Essaghoolian on LinkedIn https://www.linkedin.com/in/nareg-essaghoolian/ Decrypted Legal and Consulting https://www.instagram.com/decryptedlawEPISODE TIME STAMPS [00:00:47] - Startup legal expertise from UCLA [00:02:20] - VCs don't do follow-on investments? [00:03:20] - Smart decision, reduced risk, 10x return. [00:03:46] - "Investors don't follow: Crazy thought." [00:04:29] - Sequoia loses trust, no follow-on investment. [00:05:16] - "Ten times return on investment" [00:05:55] - Y Combinator: Accelerate, Invest, Return. [00:06:47] - Angel investors not investing in Series B, C. [00:07:44] - Tech, web three, down rounds. [00:08:35] - "Protective terms more prevalent than pay-to-play." [00:09:31] - "Understand cap table terms: Liquidation Preference" [00:10:06] - Investors get preferential treatment. [00:11:01] - Double-dipping liquidation preference. [00:11:34] - Negotiating Leverage for Investors [00:12:25] - Investor gets 20% upside. [00:12:58] - Participating Preferred: 18M Shared [00:13:47] - "Accumulating dividends of 6% annually." [00:14:30] - Investors leveraging market, waiting. [00:15:23] - "Maximize returns i CONNECT WITH US Claim Your Weekly EDGE Newsletter. It's FREE! Written by Brandon with insights giving you an edge to win. Over 17,200 listeners and counting! -> https://edge.ck.page/bea5b3fda6 EDGE Website -> https://MyEDGEPodcast.com EDGE on YouTube -> https://www.youtube.com/@brandoncwhite OTHER GREAT PODCASTS ON THE THE BEST PODCASTS NETWORK On Business Podcast For business owners looking to increase revenues. https://OnBusinessPodcast.com MARKETING Podcast Marketing science that reveals successful marketing. https://PodcastOnMarketing.com 401k Plans Podcast Set up and run your company's 401k retirement savings plans correctly. https://401kplanspodcast.com Car Accident Lawyer Podcast Best lawyers giving advice. https://caraccidentlawyerpodcast.com Top podcast for entrepreneurs...