Remove Dilution Remove Distribution Remove Government Remove Preferred Stock
article thumbnail

8 Entrepreneur Mistakes That Turn Off Real Investors

Startup Professionals Musings

Nice-to have” and “easier-to-use” products, or social ventures needing government support, are not likely to provide a financial return to investors. Experienced entrepreneurs understand investor expectations of Board representation, preferred stock, and payments based on interim milestones.

article thumbnail

8 Funding Proposal Red Flags Every Startup Can Avoid

Startup Professionals Musings

Nice-to have” and “easier-to-use” products, or social ventures needing government support, are not likely to provide a financial return to investors. Experienced entrepreneurs understand investor expectations of Board representation, preferred stock, and payments based on interim milestones.

Insiders

Sign Up for our Newsletter

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

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. Anti-dilution protection. Why is it called Series Seed? What rights does the Series Seed have? Board seat.

Finance 70
article thumbnail

Avoid New Venture Shortcuts That Scare Away Investors

Startup Professionals Musings

Nice-to have” and “easier-to-use” products, or social ventures needing government support, are not likely to provide a financial return to investors. Experienced entrepreneurs understand investor expectations of Board representation, preferred stock, and payments based on interim milestones.

article thumbnail

Venture Capital Term Sheets – Redemption Rights

Scott Edward Walker

A redemption right is another feature of preferred stock and permits the investors to require the company to repurchase their shares after a specified period of time; it is, in effect, a “put” right – that is, the investors may elect to put their shares back to the company. Redemption Rights What Are Redemption Rights?