Startup Company Lawyer

JANUARY 9, 2011

I started writing this post in September 2010, but only got around to finishing it.). Convertible debt with a price cap seems to be the preferred structure for early-stage financings. Paul Graham has sparked some discussion on the topic in August 2010 when he tweeted “Convertible notes have won.

Liquidation Preference 57

Liquidation Preference Finance Preferred Stock Common Stock 57

www.quora.com

JANUARY 16, 2011

and I'll accept) 5 Comments • Nov 1, 2010 Thanks, Ty. Mark Suster • Nov 1, 2010 Here is a post on Brad Feld's blog on the seed financing docs he found, some of which you mention: [link] chives/. David Shen • Nov 1, 2010 Whoa! Ben Joven • Nov 3, 2010 This is great, thanks Mark!

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

Both Sides of the Table

AUGUST 30, 2010

Funnily enough I just answered this question yesterday on Quora when somebody asked, “Why would an early-stage investor specifically NOT prefer a convertible note structure to straight equity (e.g. a priced/valued preferred stock financing)?&#. Here is my answer with some minor editing: _.

Equity 319

Equity Early Stage Angel Investor Valuation 319

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues. Term-sheets for preferred stock offerings are designed to protect the investor in case things don’t go as well as planned.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

K9 Ventures

MAY 14, 2011

Common Stock. Convertible Note or Preferred Stock. Convertible Note or Preferred Stock. Preferred Stock. Preferred Stock. Preferred Stock / Warrants. The Series A is now the third round of financing for a company, but the nomenclature hasn’t been changed.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Ben's Blog

JULY 16, 2013

3/31/2010: 18.8. In fact, if you are like most companies, your managers probably implied to your employees that your stock price would only rise as long as you were private. They might have said something ridiculous like: “Based on the current price of the preferred stock, your offer is already worth $5M.” Silly them.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Both Sides of the Table

APRIL 14, 2010

It is 2010. That means that they likely raised money at a particularly high price relative to 2010 prices. In straight preferences the investors only get this money in a “downside&# scenario as protection that they get their money back if your company isn’t successful. But pass they will. Brain damage.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

Up and Running

MAY 23, 2016

Delaware law gives preferred stock investors of a corporation certain voting rights and control over the corporation. Step 5: Get financed. After about a six-month development cycle, we launched a beta version in July 2010 and three months later, started earning revenue that grew each month. Pick a name for your business.

Software Review 74

Software Review Software Delaware Forecast 74

Scott Edward Walker

MAY 30, 2013

In the Hampshire Group case in 2010, the Delaware Chancery Court expressly noted that officers are “expected to pursue the best interests of the company in good faith (i.e., to fulfill their duty of loyalty) and to use the amount of care that a reasonably prudent person would use in similar circumstances (i.e., What Does This All Mean?

Delaware 68

Delaware Founder Cofounder Due Diligence 68

thestartuplawyer.com

FEBRUARY 24, 2010

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Tamer Salama says: August 14, 2010 at 11:32 am Thank you for your great posts. Click here to learn more about his practice.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

www.vccafe.com

MARCH 11, 2013

easy business finance software. YCombinator Series AA Equity Financing Documents. Y Combinator : They provide a series of AA equity financing documents that are written with simpler words so start-up companies will have an easier starting point. Startup Threads. Videos/presentations. SlideShare. Haiku Deck. GoAnimate *.

Software Review 53

Software Review Technical Review Startup 53

www.mattbartus.com

DECEMBER 9, 2012

Matt Bartus — February 9, 2010. an option to purchase shares in the future at a pre-determined price) to the investor to purchase preferred stock at the Series A price. I just worked on a financing for a company that received a term sheet from a group of VCs at a $7 million pre-money valuation. December 2010 (1).

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Ben's Blog

JULY 16, 2013

3/31/2010: 18.8 In fact, if you are like most companies, your managers probably implied to your employees that your stock price would only rise as long as you were private. They might have said something ridiculous like: “Based on the current price of the preferred stock, your offer is already worth $5M.” 3/29/1996: 22.3

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Professor VC

JANUARY 17, 2008

One of the panelists mentioned that they have gotten very valuation sensitive (nothing wrong with that) and like to purchase preferred stock rather than invest in convertible notes. He then went on to say that this type of financing was good for the entrepreneur (vs taking VC money) because they got to keep more of the company.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Tim Keane

APRIL 12, 2006

What’s your attitude about “next round” financing? We are open to them and prefer to begin to co-invest at. Preferred Stock is the most usual form of investment today. What’s your attitude about “next round” financing? We are open to them and prefer to begin to co-invest at. October 2010. April 2013.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60