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WHAT ARE SUPER PRO RATA RIGHTS?

Scott Edward Walker

First let’s discuss pro rata rights (sometimes referred to as “participation” or “preemptive” or “right of first offer/refusal” rights) – which investors will typically request in connection with any venture capital financing. This is a huge red flag and founders should push back very hard.

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Startup Resources

www.vccafe.com

Venture Capital Cafe > Startup Resources (Updated Mar 2013). Boilerplate Venture Funding Documents. YCombinator Series AA Equity Financing Documents. National Venture Capital Association â?? Raising Venture Capital. Founder Equity Issues. Venture Hacks equity section.

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Investor Nomenclature and the Venture Spiral

K9 Ventures

The funding for the incubator of accelerator may come from the principals running the incubator (as I believe is the case for AngelPad , i/o ventures etc.) The incubators invest usually for an equity stake and buy equity at a extremely low valuation (for example, 7% for $15,000, which implies a pre-money valuation of less than $200,000).

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Management Carve Out Plan

ithacaVC

The MCOP can serve a critical role as founders and other management team members are diluted down by rounds of financing or if their equity is not in the money. As the investors’ aggregate liquidation preference (ALP) increases typically the need for a MCOP also increases. A few key points to consider: 1.

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ProfessorVC: Touched by an Angel

Professor VC

While currently free to angel groups, their business model revolves around aggregating the angel investment data. If my math is correct, this is approximately a 31% IRR, which has to beat individual angel investments on aggregate and venture capital returns over the period of the study (1990-2007). Venture News.