article thumbnail

Venture Capital Term Sheets – Redemption Rights

Scott Edward Walker

Redemption Rights What Are Redemption Rights? A redemption right is another feature of preferred stock and permits the investors to require the company to repurchase their shares after a specified period of time; it is, in effect, a “put” right – that is, the investors may elect to put their shares back to the company.

article thumbnail

VC Term Sheets – Investors’ Option to Walk

Scott Edward Walker

The Investors’ Right to Walk VC Term Sheets Are Non-Binding. It is important for founders to understand that VC term sheets are usually deemed to be “non-binding” (other than perhaps a few provisions, such as the “no-shop” provision and legal fees and expenses). What Are the Key Issues for Founders?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Are the Rights of Minority Stockholders?

Scott Edward Walker

These are rights granted to stockholders pursuant to the respective laws of the company’s State of incorporation and are often the only rights that minority common stockholders have. If you have any questions, please feel free to call me directly at 310-288-6667 (Los Angeles) or 415-979-9998 (San Francisco).

article thumbnail

Venture Capital Term Sheets: Conversion Rights

Scott Edward Walker

Conversion Rights What Are Conversion Rights? Indeed, preferred stock, as the name suggests, is preferable to (and more valuable than) common stock because it grants certain key rights to the holders, one of which is a conversion right. There are two types of conversion rights: optional and mandatory.

article thumbnail

Out of the Crisis #9, the founders of Frontline Foods on the moral imperative to support frontline workers at scale

Startup Lessons Learned

The founders of Frontline Foods are three of these people. And so an extra special thank you on behalf of all of us in the city of San Francisco for what you're doing. So, the numbers in San Francisco are very different than what we're seeing in other parts of the country. Not only in San Francisco, but nationwide.