article thumbnail

Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. As he said, “Great innovations solve problems or reduce costs. I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective.

article thumbnail

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

Startup Company Lawyer

To differentiate it from typical “Series A&# preferred stock, which comes with certain expectations with regard to rights. There is no real rule to what a particular series of preferred stock is called. The Series Seed Stock Purchase Agreement has fairly limited reps and warranties. Legal fees.

Finance 70
Insiders

Sign Up for our Newsletter

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

article thumbnail

X Does Not Always Equal X

The Startup Lawyer

While using these document sets can help reduce transaction costs and the time to close, a startup can run into trouble by trusting deal documents without verification. For example, the well-known Series Seed has a 1x non-participating liquidation preference , while the version I reviewed had a 1x participating preference.

article thumbnail

Shark Tank Season 4 episode 3 breakdown

Lightspeed Venture Partners

in sales but made only $20k in profit, despite not having any advertising costs. The product retails for $39.95, wholesales for $19.95, and costs just $5 to make. In most investments, the investor gets straight preferred stock. The company was founded 12 years ago and had done $24M in sales to date.

article thumbnail

Everything You Ever Wanted to Know About Convertible Note Seed Financings (But Were Afraid To Ask) – Part 1

Scott Edward Walker

ii) why are convertible notes issued instead of shares of common or preferred stock? In the context of a seed financing, the debt typically automatically converts into shares of preferred stock upon the closing of a Series A round of financing. Why Can’t a Startup Issue Shares of Common Stock to Investors?

article thumbnail

5 Principles of Persuasive Web Design

ConversionXL

Conserve attention at all costs. Once people know that your website has something they’re interested in, the visual design of the site draws them in and through strong visual hierarchy they focus on what matters – it’s important to conserve the attention we got at all costs. Cheesy stock photos.

Web 134
article thumbnail

Startup Equity For Employees

www.payne.org

2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Startup Equity For Employees.

Equity 56