SoCal CTO
SEPTEMBER 27, 2011
Ben Yoskovitz gets to a similar point In Changing Equity Structures for Early Startup Employees : The more that those first employees feel like founders in terms of their ownership, emotional attachment, responsibility and overall understanding of the startup process (including financing, running day-to-day activities, etc.)
The Startup Lawyer
JANUARY 10, 2012
In most equity financing rounds, an investor will ask for (and get) a term called a liquidation preference. A liquidation preference is the amount that must be paid to a preferred stock holder before any sale proceeds may be paid to the holders of common stock (i.e., founders, option holders, etc.).
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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).
ithacaVC
DECEMBER 14, 2011
Continuing with the “No Mess” theme of commenting on things that give VCs pause, I thought it would be good to touch on liquidation preference. Specifically, “too much” liquidation preference (I will use “LP” for liquidation preference). million balance. ($3
Tim Keane
JANUARY 12, 2010
For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing. Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. . Second a liquidation preference and a participation.
Up and Running
AUGUST 17, 2015
Additionally, I had already studied Economics and Finance during undergrad, making the academic part of an MBA seem a little redundant. C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on). Is business school really necessary?
David Teten
AUGUST 21, 2019
Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. But you also can’t run the company forever, since investors need a liquidity event. But this is the same for a VC round with a liquidation preference. But should they?
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