Gust

JULY 23, 2012

Q: Wouldn’t a contribution of early-stage company stock have a very small impact? In fact, the contribution of early-stage company stock can have tremendous impact. Take an example where you donate 25,000 shares of common stock with a value of $0.20 Q: How does the tax deduction work?

Stock 114

Stock Capital Gains Warrant Stock Options 114

www.inc.com

SEPTEMBER 24, 2011

Graham also pushes for common stock, the right to participate in future funding rounds to preserve the size of the stake, and a guaranteed seat on the board. In most cases, Arizona Bays management team asks for a stake of at least 20 percent.

Arizona 40

Arizona Equity Iowa Venture Capital 40

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. And so forth.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

ithacaVC

JUNE 28, 2011

So, if a shareholder did not participate in the Series B, the holder’s Series A stock might convert to common stock or lose certain key provisions like liquidation preference. Warrant kickers: A warrant kicker is a reward for participation.

Warrant 53

Warrant Common Stock Liquidation Preference Institutional Investors 53

Berkonomics

DECEMBER 6, 2010

Use stock options and warrants to pay for service only rarely. Earlier, I stated that stock options are the currency of early stage business. When assessing the relative merit of using attractive non-cash forms of compensation for outside services, first be aware of the true value of your stock.

Stock Options 61

Stock Options Stock Warrant Common Stock 61

Startup Company Lawyer

MARCH 14, 2010

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. Legal fees. The company is obligated to pay $10K for investors counsel.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

ReadWriteStart

JANUARY 28, 2022

Common stock. The holding of common stock in a company indicates ownership in the corporation. Investors of common stock are eligible for : The choice of the Board of Directors. However, the holder of a warrant holds a leveraged bet on the corporation’s common shares. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

Gust

DECEMBER 8, 2011

Enter into agreements between Newco and founders, early contributors, outside advisors or service providers under which they contribute or assign all intellectual property related to the company’s business to Newco in exchange for the issuance of founders’ stock (Common Stock). Make escrow arrangements for restricted stock (i.e.,

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Gust

MAY 24, 2012

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

K9 Ventures

MAY 14, 2011

Common Stock. Convertible Note or Preferred Stock. Convertible Note or Preferred Stock. Preferred Stock. Preferred Stock. Preferred Stock / Warrants. Limited Partners, very little Personal Money. Corporate Money. Investment Structure. Debt or Convertible Note. Board Seats.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Both Sides of the Table

SEPTEMBER 5, 2012

they now have 4x the stock and thus 4x the liquidation preferences (since each share has liquidation preferences on it). The alternative is to give investors 1,2 & 3 the exact same amount of preferred Series A stock and give investors 1 & 2 more common stock (which doesn't have liquidation preferences) to adjust for the discount.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Professor VC

JULY 25, 2013

One area I''ve noticed a lot more recently are angel investors and seed stage funds trying to grab a little bit extra, whether it''s warrants for leading the round, advisor shares to go along with the investment, or a common stock stake for just being who they are.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Both Sides of the Table

SEPTEMBER 8, 2012

In the document it outlines that you will issue stock at a $5m pre-money valuation and in recognition of the additional risks and commitments of early money you have allocated warrants to the first $150,000 of investors. Another easy way to do it is the term sheet create Series Seed A-1 and Series Seed A-2.

Pre-Money Valuation 294

Pre-Money Valuation Finance Liquidation Preference Warrant 294

Startup Professionals Musings

OCTOBER 29, 2013

The most common case is an equity investment, but there are many terms that can impact what request size is credible. I’m talking about things like anti-dilution clauses, preferred versus common stock, valuation tied to later round, warrants, and bridge loan options. Single or staged delivery.

Valuation 258

Valuation Early Stage Warrant Common Stock 258

Startup Professionals Musings

SEPTEMBER 19, 2012

The most common case is an equity investment, but there are many terms that can impact what request size is credible. I’m talking about things like anti-dilution clauses, preferred versus common stock, valuation tied to later round, warrants, and bridge loan options. Single or staged delivery.

Valuation 236

Valuation Early Stage Warrant Common Stock 236

Startup Professionals Musings

JULY 8, 2011

The most common case is an equity investment, but there are many terms that can impact what request size is credible. I’m talking about things like anti-dilution clauses, preferred versus common stock, valuation tied to later round, warrants, and bridge loan options. Single or staged delivery.

Entrepreneur 234

Entrepreneur Valuation Early Stage Warrant 234

Startup Professionals Musings

JUNE 9, 2010

The most common case is an equity investment, but there are many terms that can impact what request size is credible. I’m talking about things like anti-dilution clauses, preferred versus common stock, valuation tied to later round, warrants, and bridge loan options. Single or staged delivery.

Valuation 227

Valuation Early Stage Warrant Common Stock 227

venturehacks.com

OCTOBER 21, 2010

This reverse dilution benefits all classes of stock proportionally even though the common stock holders paid for all of the initial dilution in the first place! Third, if you sell the company before the Series B, all un-issued and un-vested options will be cancelled.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68