Common Stock Demand Finance Valuation 
ReadWriteStart
JUNE 1, 2020
In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. The shares given out can either be common stocks or preferred stocks. ? Debt investment. Stages of Equity-based funding. ? Inception stage.
David Teten
JANUARY 19, 2021
From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity.
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Both Sides of the Table
JULY 29, 2010
We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.
Startup Company Lawyer
MARCH 14, 2010
After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).
Tim Keane
JANUARY 12, 2010
Term-sheets and Valuations: Thinking about Negotiations. I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.
Gust
OCTOBER 12, 2011
Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. First, a word about the maturity date.
Gust
OCTOBER 21, 2011
To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision. Suppose the notes converted as if the acquisition were an eligible financing round. Most would agree this is not a fair outcome.
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