Finance Issued Shares Liquidation Preference Naming 
www.mattbartus.com
DECEMBER 9, 2012
Prior to the VC’s exercise of the warrants, the founders will actually own 67% of the issued shares because the warrant shares are not outstanding until the warrants are exercised. I just worked on a financing for a company that received a term sheet from a group of VCs at a $7 million pre-money valuation.
Scott Edward Walker
JUNE 9, 2011
As many of you know, VC investors are typically issued shares of preferred stock, not common stock. Indeed, preferred stock, as the name suggests, is preferable to (and more valuable than) common stock because it grants certain key rights to the holders, one of which is a conversion right.
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