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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The shares given out can either be common stocks or preferred stocks. ? Debt investment. Instead of funding, you pay the investors a structured royalty, which is a portion of the sales. These phases are focused on inorganic growth, mergers, buyouts, acquisitions, and exit preparation for the business.

Startup 150
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What is Class F common stock?

Startup Company Lawyer

These provisions include a special class of super-voting common stock, called “Class F&# common stock, which is named for “Founders.&#. The COI includes Class A common stock, which has one vote per share, and Class F common stock, which has 10 votes per share. Protective provisions.

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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Sales & Marketing | Wednesdays. SALES & MARKETING. Even with the turmoil in the capital markets in the second half of 2007, it was another record year for merger and acquisition activity. The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Innovation | Fridays. Leadership & Managing | Tuesdays. Email address: Home.

Arizona 40
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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

If I represent investors in a later Series A financing, I would probably use the existence of the drag-along as an excuse to implement a more aggressive drag-along provision — which does not require the approval of the holders of common stock to trigger. Co-sale rights. Changes in preferred and merger/sale of assets only.

Finance 70
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What are the terms of Yuri Milner/SV Angel’s Start Fund $150K investment into Y Combinator companies?

Startup Company Lawyer

The Series AA has a 1x non-participating liquidation preference, weighted-average anti-dilution, basic protective provisions (adverse changes to the Series AA, number of shares of Series AA, or merger/asset sale), right to maintain proportionate ownership, ROFR/Co-Sale rights and basic information rights.

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Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79
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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

In other words, in the event of the startup’s “acquisition” (which is often broadly defined to include a merger, change of control or sale of substantially all its assets), the maturity date of the note would be accelerated, and the amount of the loan, plus interest, would become due at the closing of the acquisition.

Finance 64