Remove Equity Remove Preferred Stock Remove Sales Remove Venture Capital
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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. These investments are made instead of shares or equity in your startup. The shares given out can either be common stocks or preferred stocks. ? Debt investment. Bootstrapping.

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Succeeding in Venture Capital is Mostly About Knowing What to Buy. But When To Sell Matters Also.

Hunter Walker

Starting a venture capital blog post with 1970s country music lyrics is pretty uncommon, but so is writing about when and why an investor might choose to sell equity before the company exits. And finally, a more robust (but still somewhat opaque) secondary market emerged for transacting equity among parties.

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What is convertible equity (or a convertible security)?

Startup Company Lawyer

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. Background. The problem.

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Common Stock vs. Preferred Stock in Venture Funding Transactions

Growthink Blog

I get the same question a lot from entrepreneurs raising equity capital (venture capital or angel funding). The question is whether they need to issue common or preferred stock. The answer depends on how and what rights are defined in the preferred stock.

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What if you and your investors don’t agree on an exit?

Berkonomics

I also recall vividly one of my first investments where the entrepreneur backed out of a sale to a well-known investment company at the last second, declaring his intention not to sell “his” company. For some, that comfort is worth forgoing building high equity value. A personal experience that relates.

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7 Investor Term Sheet Demands Startups Need Not Fear

Startup Professionals Musings

Investors, on the other hand, look at the money figure, and even the equity, as the easy part. This is a loan with an option to convert to equity at a later date. For later investments, the price is equity, with a percentage of the owner stock to be assigned to the investor. Type of stock assigned to the investor.