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Remove Demand Remove Document Remove Liquidation Preference Remove Reputation
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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

SEPTEMBER 5, 2012

If I could persuade you that they’re already in these documents would you consider abandoning this structure? Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. Convertible notes often have multiple liquidation preferences.

Ratchet 354
Ratchet Liquidation Preference Equity Stock 354
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On the Road to Recap:

abovethecrowd.com

APRIL 20, 2016

“Dirty” or structured term sheets are proposed investments where the majority of the economic gains for the investor come not from the headline valuation, but rather through a series of dirty terms that are hidden deeper in the document. They use the reputation of the other investors as a proxy for due diligence.

IPO 40
IPO Term Sheet Silicon Valley Valuation 40
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