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Malloy Industries

Fundraising

Demystifying Valuation & Term Sheets

You’ve built something real. You’ve got early traction. You’re ready to raise. Then an investor asks, “What valuation are you targeting?” And suddenly your confidence disappears like a Stripe integration on demo day. Startup valuation and term sheets can feel like a foreign language — until you learn how to read the signals and negotiate like a pro. This email is part of the Malloy Industries fundraising series to help you raise smarter. Today, we’re breaking down startup valuation and term sheets — combining Hustle Fund’s practical insights with hard-earned founder lessons. Let’s make this part of the raise way less intimidating. Step 1:

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Venn diagram comparing SAFE notes and convertible notes: what each offers and what they share

Convertible Notes, SAFEs, and Priced Equity Rounds: What to Know Before You Sign

A CEO raises $1M on convertible notes, and two years later realizes they've already given up 25% of the company, because they didn't fully understand what they signed. CEOs are brilliant at building; with funding instruments, too many wing it, and the wrong terms can cost millions. Here are the three most common early-stage instruments, in plain terms, so you raise the right way. 1. Convertible Notes A convertible note is a loan with four variables (valuation cap, discount, interest rate, and maturity date) that converts into equity at your next round. Pros: widely understood, more popular with East Coast

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Chalkboard reading: Life lesson, No doesn't always mean never, sometimes it just means not yet

Turn Investor Rejections into Gold

You know what's worse than a "no" from an investor? A slow "maybe." A "no" gives you clarity; a "maybe" drags, stalls momentum, and clutters your calendar. Great CEOs don't fear rejection, they use it as fuel. Every "no" can sharpen your pitch and get you to a faster "yes." Here's what to do when you hear one. (Our full playbook is in Your Guide for Fundraising.) 1. Ask for Specific Feedback "I hate to let a good 'no' go to waste. What's your main concern? What are you afraid might happen?" Then address that concern proactively in your deck

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Leverage Social Proof and Momentum to Raise Faster

Ever notice how once one investor commits, others suddenly want in? That's momentum, and great companies manufacture it. Investors are human: they hate going first and they fear missing out. Whether you're raising a $250k pre-seed or a Series A, here are four ways to turn passive interest into active commitments. 1. Send Short 1:1 Progress Emails Between Meetings Between investor meetings, send brief, specific updates that mention real progress: "We just met with [Investor A], who was impressed with [metric]. When they heard we're in diligence with [Investor B], they asked for data-room access. I'm pitching [Investor C] next

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Demystifying Valuation & Term Sheets

You’ve built something real. You’ve got early traction. You’re ready to raise. Then an investor asks, “What valuation are you targeting?” And suddenly your confidence disappears like a Stripe integration

Read More »