Startup Company Lawyer

AUGUST 31, 2012

” As a result, Ted introduced the Series Seed preferred stock documents as an alternative to convertible debt for early stage investments. Convertible debt with a maturity date longer than one year creates problems for California-based investors due to licensing requirements under the California Finance Lenders Law.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Scott Edward Walker

APRIL 22, 2012

(ii) why are convertible notes issued instead of shares of common or preferred stock? This part 2 will address the economics of a convertible note seed financing and the three key economic terms: (i) the conversion discount, (ii) the conversion valuation cap and (iii) the interest rate. What Is a Conversion Discount?

Pre-Money Valuation 72

Pre-Money Valuation Finance Liquidation Preference Founder 72

Scott Edward Walker

MAY 15, 2012

What Happens If a Startup is Acquired Prior to the Note’s Conversion to Shares of Preferred Stock? As discussed in part 1 , in the context of a seed financing, a convertible note is a loan that typically automatically converts into shares of preferred stock upon the closing of a Series A round of financing.

Finance 64

Finance Founder Accredited Investor Preferred Stock 64

Austin Startup

OCTOBER 27, 2017

Out of State VCs When you’re not CEO Material Preferred Stock v. Common Stock Ask the Users Because we’re known as Startup/VC lawyers who don’t represent VCs (just companies), I often get asked about my thoughts on “founder friendliness.” This dynamic is strongest in California. Good entrepreneurs and advisors know that.

Founder 48

Founder Cap Table Preferred Stock Common Stock 48

techcrunch.com

SEPTEMBER 2, 2012

As lawyer Scott Edward Walker wrote earlier this year, because of this “Convertible notes are ticking time bombs: if the maturity date is reached, and there hasn’t been a Series A round (triggering the automatic conversion of the notes into shares of preferred stock), there is the potential for disaster.” Gift Guide.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

www.vccafe.com

MARCH 11, 2013

GetSatisfaction - conversations between companies / customers. California Israel Chamber of Commerce. Preferred Stock Purchase Agreement. online subscription management. FeeFighters â?? find the cheapest credit card processors. Customer Support. support, knowledgebase tool for your site. SnapEngage â?? Zendesk â??

Software Review 53

Software Review Technical Review Startup 53