Seeing Both Sides

AUGUST 28, 2017

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens?

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens?

Early Stage 20

Early Stage Equity Venture Capital Government 20

Scott Edward Walker

JULY 27, 2011

Because these rights are governed by State law, I will focus on the State of Delaware — where most companies are incorporated. The Delaware statute defines “proper purpose” to mean “a purpose reasonably related to such person’s interest as a stockholder.” 1) Inspection Right. 2) Right to Bring a Derivative Claim.

Delaware 49

Delaware Liquidation Preference Redemption Los Angeles 49

Scott Edward Walker

JULY 7, 2011

Redemption Rights What Are Redemption Rights? Moreover, there are significant restrictions under applicable State law regarding redemptions if the company does not have the legally-available capital. What Does a Redemption Rights Provision Look Like?

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

Scott Edward Walker

APRIL 9, 2012

Part 3 will cover certain special issues, such as (i) what happens if the startup is acquired prior to the note’s conversion to equity? (ii) ii) what happens if the maturity date is reached prior to the note’s conversion to equity? They also have certain key rights as minority stockholders under applicable State law (usually Delaware).

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87