Common Stock Related Topics 
Gust
NOVEMBER 28, 2023
When a corporation is established, its ownership is divided into pieces called shares of common stock. That’s what you as a founder will have, which is why it’s also known as founders’ stock. There is a different kind of stock that investors can choose to purchase, called preferred stock.
Gust
NOVEMBER 28, 2023
Over the past 20 years, the typical structure for seed/angel deals has shifted from common stock (in the mid-1990s) to convertible notes (late 1990s through early 2000s) to full Series A convertible preferred (mid-2000s) to convertible notes with a cap (late 2000s) to Series Seed convertible preferred or similar (present).
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Gust
JUNE 7, 2014
5) Senior Preferred Stock and warrants. 7) Junior Preferred Stock and warrants. 9) Common Stock (including any Preferred that converted to Common, any exercised options, and all Founders stock) and Common stock warrants. 2) Secured creditors. 3) Un-secured trade creditors.
Gust
MARCH 16, 2014
In reality, so-called “Founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. Here are some typical special terms and considerations for Founder’s stock: Negligible real value.
Gust
MAY 31, 2014
In a larger startup post Series A or B, the board might be expanded to five people, with two directors chosen by the Common stock holders (the founders), two by the investors (often one by each of two VC funds), and one independent director agreed to by everyone.
Gust
DECEMBER 18, 2013
In contrast, doing a full Series A round might be $25,000 – $30,000 each, and even a Series Seed might be $10,000 each); that it typically provides many fewer rights and protections for investors ; and that while everyone investing in a Series Seed round will be investing on the same terms at the same valuation, with a series of Convertible (..)
Gust
SEPTEMBER 17, 2014
If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. “But how do I offer cheaper prices to early investors?”
Expert insights. Personalized for you.
91 
Let's personalize your content