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I'm Frank Chen.

Today I'm here with Scott Cooper, and we're doing a three-part series. You've landed in part two, which is all about fundraising. What we're going to do is dig into the mechanics of how you work with a VC during the fundraise process, how you interpret the terms of the term sheet, and hopefully this will give you a sense of how you can actually

have a meaningful dialogue with a venture capitalist. We produce this video for the same reason

that Scott wrote this book, which is as venture investors, we do this day in and day out. We will

see thousands of entrepreneurs will write dozens of term sheets, whereas you may end up doing this once in your

life. And so we wanted to help you understand some of the terms and the art and the science

that go into fundraising. All right, so let's get right into it. Why do I need to be a Delaware

Seacorp? Like what's special about Delaware and what makes other entities hard to fund from a VC's point of view?

Yeah, so there are lots of varieties of, you know, kind of organizations of business you can do.

There's C-Corps, there's things called partnerships.

The main reason why you do a C-Corp and why it's in Delaware, quite frankly, is there's a lot of just legal precedent there.

Delaware had kind of made themselves

kind of the home of businesses many, many years ago.

And so it makes people like us and lawyers feel comfortable

because we know that there's hundreds of years

of, you know, kind of legal precedent that says,

hey, if this thing happens, this is what happens,

and things are fairly well settled.

...