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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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Series Seed Financing Documents

www.seriesseed.com

Series Seed Financing Documents Blog. Series Seed Financing Documents. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. We went with equity because ivestors would prefer to get equity for the following reasons: 1. Long term capital gains possible for early exit.

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Mortgage for Business? Here’s Why!

The Startup Magazine

With a residential mortgage, you borrow money to help you finance buying a home. Another key advantage is a monthly business mortgage payment typically costs less than monthly rental amounts. Furthermore, the equity on the building will grow with every mortgage payment you make.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

How to finance a new seed-stage startup? Convertible equity? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” A convertible note financing is not a loan in the conventional sense. Convertible debt?

Finance 134
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Version 2.0 and why Series Seed Documents are better than capped convertible notes

www.seriesseed.com

Series Seed Financing Documents Blog.   That’s because there are not that many issues to negotiate in a simple equity financing.   With Series Seed: ·    Costs should be roughly the same (if not cheaper) than using industry standard debt documents.  SeriesSeed.com. Blog Archives. 09/02/2010.

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Everything You Ever Wanted to Know About Convertible Note Seed Financings (But Were Afraid To Ask) – Part 1

Scott Edward Walker

Introduction We are in the golden age of seed financing. Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. What is a Convertible Note?

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Thoughts on Convertible Notes

K9 Ventures

I may be well be in the minority in the Valley to think this way — especially so as a seed stage investor — but I have a strong preference for doing priced equity rounds for funding companies at any stage. Since the financing would likely happen in short order, there was no need to have a valuation cap in the note.