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Starting your first company can be overwhelming, especially when it comes to understanding fundraising instruments like stock, preferred stock, options, and convertible notes. This video aims to demystify the process of fundraising for startups. Raising capital is essential for early-stage tech startups looking to grow. Convertible notes are commonly recommended for this purpose. To grasp how they work, it's important to first understand equity and stock. Stock represents company ownership and is distributed in parts. For clarification on any unfamiliar terms, refer to the video description for a glossary. This tutorial is made possible by the support of investors at Carao Ventures validating legal documents.