Security Types

The line graph below displays the percentage of funds raised by each security type annually, beginning in Q2, 2016.

  • Common stock - represents ownership in a company.
  • Preferred stock - represents ownership in a company with a higher claim to dividends than common stockholders.
  • Debt offering - pays interest to investors throughout the course of the loan.
  • Convertible note - a form of short-term debt that converts into equity by a specified date as provided in the terms of the note.
  • SAFE (simple agreement for future equity) - an alternative to a convertible note, the investor receives the right to purchase stock if and when there is a future valuation event.
  • Membership Unit - specific interests issued to an investor of a Limited Liability Company (LLC). Investors are entitled to a share of the company’s net annual income and have the right to vote.
  • Other - a catch-all category for other security types such as Revenue Sharing Agreements, Revenue Sharing Notes, Crowd Notes, and Tokens.