YoungUpstarts

JUNE 17, 2020

While businesses are generally seeing payment waivers across the board, the vast majority of contracts and virtually all loans include other obligations (or “covenants”) that if not satisfied or specifically waived still render the agreement in default. What constitutes an “Event of Default” under those agreements?

Bankruptcy 179

Bankruptcy Covenant Florida Balance Sheet 179

Pascal's View

JULY 9, 2017

The easiest way to do so is via SAFE notes, due to their simplicity, “available online” documentation, no major covenants established to protect the investors, no governance implications at the board level, etc. That’s only one result of mismanaged expectations dating back to when the notes were issued! It’s going to be great!”.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Berkonomics

JULY 16, 2020

Ironically, the term is “compensating balances”. The term of art is “compensating balances,” and certainly using existing cash to leverage new loans makes the company more liquid, but at a price, as the compensating balances cannot be touched and are essentially frozen for the duration of the bank loan. Even more add-on charges.

Covenant 62

Covenant Dilution Warrant Intellectual Property 62

Pascal's View

DECEMBER 17, 2012

It is critical to know the state of the art in merger terms leading to an acquisition and in post-merger covenants, particularly with respect to the release of cash consideration held in escrow or as a holdback by the buyer. Challenge yourself to do better as a seller! More on this topic to follow…

Acquisition 38

Acquisition Merger Covenant Liquidity Event 38

YoungUpstarts

AUGUST 19, 2019

Therefore, you need to, first of all, familiarize yourself with such terms as default, loan-to-value ratio, financial covenants, balloon payment, and personal guarantee among many others. As such, you need to remember that a positive credit rating plays a great role in getting regular loans at good terms.

Entrepreneur 147

Entrepreneur Covenant Business Plan Finance 147

Up and Running

MAY 21, 2015

In this article, we’ll introduce you to some of the most important contract terms to watch out for when negotiating an agreement to accept outside investments, and explain why they’re worth worrying about. So you need to make sure you understand what they’re getting, and what you’re giving up in terms of control and profits.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

Tim Keane

MARCH 9, 2011

  Here it only means that no debt service is required in the near term, or perhaps at all, but an agreed method for repayment will almost certainly be involved in the investment agreements.).   Appropriate covenants.   About the same cost as #2 but more flexible if repayment terms slip a bit. Possibilities: 1. 

Finance 83

Finance Bootstrapping Startup Equity 83

Up and Running

SEPTEMBER 26, 2016

Here’s the scoop on what raising venture debt means for startups, what and when they need to consider it, how to negotiate the best terms, and more. Banks are investing in startups with investors that will likely stick with their investment past the terms of the loan. What are typical terms from a lender?

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

Austin Startup

DECEMBER 7, 2017

To solve this, VCs and entrepreneurs need a quick and easy way to provide seed funding, without a long, drawn out negotiation, onerous debt covenants, or a crazy valuation that could hurt the investor and/or the entrepreneur. This article answers these two main questions, and summarizes a few of the terms of the Sputnik ATX SAFE note.

Covenant 48

Covenant Cap Table Early Stage SBA 48

YoungUpstarts

MARCH 14, 2012

IPOs are often seen as “coming out” parties for up-and-coming powerful conglomerates, and often the success of the IPO predicts success in the short-term future.What You Thought It Meant: International Pun Olympiad, which is just what it sounds like — but, sadly, doesn’t exist … yet. EBITDA is often used in loans covenants.

Non-disclosure Agreement 202

Non-disclosure Agreement NDA IPO Covenant 202

David Teten

AUGUST 1, 2019

Negotiating Key Terms in Your Next Executive Job Offer. Structuring and Negotiating Executive Compensation Packages: Addressing Pay, Severance, Restrictive Covenants, and More. Interim CEO And Turnaround CEO Employment Agreements: Terms And Compensation. Negotiating Employment with a Private Equity Firm – 7 Surprises to Expect.

Private Equity 60

Private Equity Equity Due Diligence Portfolio 60

David Teten

SEPTEMBER 10, 2019

Negotiating Key Terms in Your Next Executive Job Offer. Structuring and Negotiating Executive Compensation Packages: Addressing Pay, Severance, Restrictive Covenants, and More. Interim CEO And Turnaround CEO Employment Agreements: Terms And Compensation. Negotiating Employment with a Private Equity Firm – 7 Surprises to Expect.

Due Diligence 60

Due Diligence Stock Options Covenant Private Equity 60

YoungUpstarts

FEBRUARY 19, 2016

A term of six months or less is presumptively reasonable, and over two years is presumptively unreasonable. Given the challenges and limitations of non-compete agreements, there are other, less severe restrictive covenants and agreements that may be used as alternatives or supplements to non-compete agreements. Cons and limitations.

Non-Compete 100

Non-Compete Florida Jacksonville Covenant 100

Lightspeed Venture Partners

DECEMBER 10, 2012

I agree with them that the near term opportunity is to simply build more centers on their own. Banks often have operating covenants for their loans that require the company to be hitting plan, or close to it. Barbara Corcoran seized on a comment from the founders that an investor would get their money back within two years.

Covenant 162

Covenant Warrant Southern California Los Angeles 162

Berkonomics

AUGUST 21, 2013

The term of art is “compensating balances,” and certainly using existing cash to leverage new loans makes the company more liquid, but at a price, as the compensating balances cannot be touched and are essentially frozen for the duration of the bank loan.

Covenant 61

Covenant Warrant Dilution Intellectual Property 61

YoungUpstarts

JUNE 19, 2018

There’s just no other path for long-term job creation and a strong, sustainable tax base. We connected the dots and realized if we focused on early brain development, we could impact graduation rates long-term. Studer identifies a few strategies community leaders are embracing as they work to create vibrancy: 1. TM ” 8.

America 100

America Community Covenant Metrics 100

Up and Running

AUGUST 6, 2014

By contrast, independent asset-based lenders are not subject to such constraints, giving them the freedom to finance many small businesses that are thinly capitalized or otherwise do not meet traditional bank lending standards, but that are good businesses with bright long-term prospects. Benefits of ABL to the borrower.

Covenant 85

Covenant Finance Operations Small Business 85

Up and Running

APRIL 8, 2013

Long-term debt, or a ‘term loan’, is probably the most familiar, and is a lump-sum commitment in exchange for fixed monthly, quarterly or annual repayments of principal plus interest. As mentioned, debt, particularly term debt, is usually the cheapest form of external financing a company can obtain.

Equity 82

Equity Covenant Venture Capital Finance 82

David Teten

SEPTEMBER 2, 2017

This is “not in the interest” of investors, “who want to build long-term relationships with stable, high-performing funds.” . There can be significant variation among fund terms. These terms will define the economic pie management will divide and many of the obligations and limitation imposed on fund management.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

dashes.com

SEPTEMBER 17, 2011

What folks should remember is that an NDA is just another contract whose terms may be negotiated. The same goes for "non-competes" or non- solicitation covenants. If you are requested to sign an agreement and dont like the terms and they wont budge, dont sign; just decline and move on. zuccaro.joe. | May 8, 2010 7:55 AM.

NDA 52

NDA Technical Review Non-Compete San Francisco 52

crowdSPRING Blog

SEPTEMBER 20, 2016

In years prior, each season came with a subtitle that indicated what theme the anthology would follow in the episodes to come, including “Coven,” “Freak Show,” and “Hotel.” The answer, it turned out, was to lean in to that uncertainty, especially in terms of visuals.

Covenant 48

Covenant Marketing Campaign Dividend 48

crowdSPRING Blog

SEPTEMBER 20, 2016

In years prior, each season came with a subtitle that indicated what theme the anthology would follow in the episodes to come, including “Coven,” “Freak Show,” and “Hotel.” The answer, it turned out, was to lean in to that uncertainty, especially in terms of visuals.

Covenant 48

Covenant Marketing Campaign Dividend 48

crowdSPRING Blog

SEPTEMBER 20, 2016

In years prior, each season came with a subtitle that indicated what theme the anthology would follow in the episodes to come, including “Coven,” “Freak Show,” and “Hotel.” The answer, it turned out, was to lean in to that uncertainty, especially in terms of visuals.

Covenant 48

Covenant Marketing Campaign Dividend 48

BeyondVC

JUNE 11, 2007

In the last six months, we have augmented some of our existing venture financing with venture debt as the market has become quite competitive which means pricing and terms are getting more attractive for all of us. The interest in web-based businesses is there and the competitive market means that pricing and terms are pretty attractive now.

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

www.igda.org

JULY 24, 2012

When used long-term, Crunch Mode slows development and creates more bugs when compared with 40-hour weeks. More than a century of studies show that long-term useful worker output is maximized near a five-day, 40-hour workweek. In the short term, working over 21 hours continuously is equivalent to being legally drunk.

Software Review 90

Software Review Technical Review Widget Los Angeles 90

Gust

OCTOBER 26, 2011

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Having made it almost to the end of our sample term sheet: Documentation. Returning to our sample term sheet: Note Purchase Agreement.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79