Both Sides of the Table

SEPTEMBER 5, 2012

Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. ” And some seed stage investors told me, “I prefer not to fight over price now. Convertible Notes Also Can Have Multiple Liquidation Preferences.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Startup Company Lawyer

MARCH 14, 2010

I think that there are certain situations where the Series Seed and other stripped down equity financing documents might be appropriate, but I know that there are lots of situations where early-stage investors probably wouldn’t agree to the Series Seed terms. under $500K). Limited protective provisions. Investor pressure.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Professor VC

JULY 25, 2013

In investment parlance, it strictly means that new classes of stock have equal rights with prior classes in terms of liquidation preference, voting rights, etc. Their response was that we should be happy they didn''t ask for a participating preference on top of the seniority.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Up and Running

MARCH 29, 2017

See Also: Demand Validation: How to Find Out If Customers Want to Buy Your Product. Seed round funding mechanics follow a pattern. At the seed stage, the mechanics of getting money from investors is fairly straightforward. Find your own magic. Over Christmas break, I started building ZipBooks.

Term Sheet 60

Term Sheet Venture Capital Liquidation Preference Valuation 60