Startup Company Lawyer

AUGUST 31, 2012

” The theory is that the number of seed stage Series A deals led by venture capital firms is decreasing, meaning that it will be difficult for startups to raise a new round of financing. I’m not sure that founders really prefer to do convertible debt in order to avoid giving away these rights.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

K9 Ventures

MARCH 23, 2011

There has been a lot of noise in the Valley lately about how most seed stage deals are now being done as convertible notes. The typical fix for this problem is to put in a cap in the note for the pre-money price for conversion. What percent of the company should the note holder get on conversion? Why would you do that!?

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Austin Startup

MAY 17, 2017

Know the difference between a Board Observer, Information Rights, and being a member of the Board of Directors. Most angel investors writing small checks are buying the right to a small portion of the Company, and that’s it. Angels / Seed Funds who write larger checks may want a deeper view into what’s going on in the company.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48