Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Startup Professionals Musings

MAY 18, 2015

This is called stock dilution control. While new equity owners always have to get it from someone, actual re-allocation of existing shares should be based on a formula to maximize the value of your remaining founder shares. Facilitate an upgrade of founder’s common to founder’s preferred.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Feld Thoughts

SEPTEMBER 27, 2011

In today’s installment of our convertible debt series, we cover a specific case where the company is acquired before the debt converts into equity. In the case of an early-stage startup that hasn’t issued preferred stock yet, the debt converts into stock of the acquiring company (if it’s a stock deal) at a valuation subject to a cap.

Conversion 96

Conversion Sales Later Stage Preferred Stock 96

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Gust

OCTOBER 21, 2011

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Agile VC

FEBRUARY 28, 2013

increasing dividends or issuing preferred stock). Hungary probably wouldn’t sell their sovereignty and entire economy for 1x sales, but Apple has no debt so they could probably lever the deal and borrow money on top of $137 billion in equity. Time Warner (~$50B mkt cap) would be the other logical choice in this vector.

Hungary 168

Hungary Dividend Vertical Preferred Stock 168

K9 Ventures

NOVEMBER 21, 2011

And that too usually when there is sufficient investor demand for the next round, i.e. the leverage needs to be in the company’s hand (rather than investors) for any type of founder liquidity to even be an option. The concept of the Series FF stock is a good example of this.

Founder 87

Founder Common Stock Preferred Stock Stock 87

K9 Ventures

NOVEMBER 21, 2011

And that too usually when there is sufficient investor demand for the next round, i.e. the leverage needs to be in the company’s hand (rather than investors) for any type of founder liquidity to even be an option. The concept of the Series FF stock is a good example of this.

Founder 84

Founder Common Stock Preferred Stock Stock 84

The Startup Lawyer

MARCH 11, 2010

There will always be demand for good counsel. Second, the model seed docs tend to impress upon the entrepreneur that preferred equity is the best angel investment structure. Tags: Preferred Stock legal documents seed funding startup Startup Lawyer. Next up: the model reincorporation merger kit). However, most (all?)

Delaware 49

Delaware Hockey Stick Preferred Stock Open Source 49

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Startup Lawyer

MARCH 11, 2010

There will always be demand for good counsel. Second, the model seed docs tend to impress upon the entrepreneur that preferred equity is the best angel investment structure. Tags: Preferred Stock legal documents seed funding startup Startup Lawyer. Next up: the model reincorporation merger kit). However, most (all?)

Delaware 45

Delaware Hockey Stick Preferred Stock Open Source 45

www.paulgraham.com

APRIL 28, 2010

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. In an IPO, it might not merely addexpense, but change the outcome.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Altgate

MARCH 16, 2009

  In India and China there is no preferred stock.  This one really surprised me but apparently in India and China VCs don't get a different class of stock with special rights and privileges. .  And it's not always clear whether it is gross or net of taxes (you have to ask).

Global 28

Global India United Kingdom 28

www.vccafe.com

MARCH 11, 2013

on demand billing and fraud management. YCombinator Series AA Equity Financing Documents. Founder Equity Issues. Venture Hacks equity section. Legal, Equity, etc. Company Guides : They specialize in helping high growth companies and entrepreneurs seeking corporate finance advice and private equity investment.

Software Review 53

Software Review Technical Review Startup 53