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What’s a Fair 409A Discount?

VC Adventure

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

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The Pre-Seed FAQ

K9 Ventures

Typically, Pre-Seed rounds are less than $1M in aggregate capital raised. Eventually, that vacuum was filled with capital gained even earlier than the Seed round — i.e., “pre-seed.”. Yes, the infrastructure is cheap (to start), but the human costs have gone up dramatically. Q: Is Pre-Seed a Thing?

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Series Seed Financing Documents

www.seriesseed.com

.  That’s because there are not that many issues to negotiate in a simple equity financing.   Based on the comments received, both on the blog and in the many deals in which these documents have been used, I am convinced that the terms of a simple set of equity documents are really not an issue. 

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