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 Finance + Liquidation Preference
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82 articles |
| Page 1 of 1 | Previous | Next | THE STARTUP LAWYER JANUARY 10, 2012 Avoid Offensive Liquidation Preferences In most equity financing rounds, an investor will ask for (and get) a term called a liquidation preference. 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., Preferred Stock | GABRIEL WEINBERG MAY 1, 2010 Liquidation Preference (my case for 2x, non-participating) The one term we slightly modified from the model term sheet was the liquidation preference. Second, liquidation preference. Getting money back through liquidation preference won't move the IRR needle, but it will enable you to do more deals. In scenario 1, you got the normal 1x liquidation preference. | | | | | |
| ASK THE VC SEPTEMBER 29, 2011 Convertible Debt – Other Terms Pro-Rata Rights : This term allows debt holders to participate pro-ratably in a future financing. While pro-rata rights are pretty typical, if you have people asking for super pro-rata rights, or a specific portion of the next financing, you should be careful as this will likely limit your long term financing options. | VC DEAL LAWYER FEBRUARY 15, 2010 Understanding Liquidation Preferences A liquidation preference is exactly what it sounds like, priority treatment for certain stockholders upon the liquidation, sale, merger, IPO or dissolution of a company. It is a typical Series Preferred Stock right in venture financing transactions. As Liquidation Preference Per Share. . . 66.67. | VC READY BLOG JUNE 29, 2010 Anatomy of a Term Sheet: Liquidation Preference NOTE: This is the fourth post in our series about standard terms in early stage equity financings. While the term “liquidation preference” suggests the provision applies only if the company goes belly-up, in reality there is likely to be little to fight over if this happens. | VC READY BLOG JUNE 29, 2010 Anatomy of a Term Sheet: Liquidation Preference NOTE: This is the fourth post in our series about standard terms in early stage equity financings. While the term “liquidation preference” suggests the provision applies only if the company goes belly-up, in reality there is likely to be little to fight over if this happens. | | | | | | | |
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STARTUP COMPANY LAWYER | SUNDAY, MARCH 14, 2010 How do the sample Series Seed financing documents differ from typical Series A financing documents?
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). Combinator Series AA Equity Financing Documents (by WSGR). Dividend preference. Almost MORE >> -
ASK THE VC | TUESDAY, AUGUST 23, 2011 Model Cap Tables With VCHub
The LearnVC site has a bunch of other interactive examples for some of the basics of venture financing including: Option Pool Creation. Convertible vs. Participating Preferred. Liquidation Preferences. Fundraising cap table financingA few days ago I answered a question on AsktheVC about modeling cap tables. MORE >> -
STARTUP COMPANY LAWYER | SUNDAY, JANUARY 9, 2011 Is convertible debt with a price cap really the best financing structure?
Convertible debt with a price cap seems to be the preferred structure for early-stage financings. Over the last 12 months, I’ve noticed a trend where early-stage startup companies raise seed financings of between $250K and $1M using a convertible note with a price cap. Is a priced Series A financing a valid alternative? MORE >> -
VENTURE HACKS | WEDNESDAY, OCTOBER 27, 2010 How much money should I raise?
Just try to maintain control, monitor your liquidation preference, and monitor your dilution. Tags: Dilution Future Financings We get this question all the time and there’s no right answer. So I started a discussion on Quora to learn more. Raise too much money and you may make less dough when you exit. MORE >> -
VC READY BLOG | TUESDAY, AUGUST 24, 2010 Anatomy of a Term Sheet: Index
4. Liquidation Preference. Tags: Anatomy of a Term Sheet Financing 1. Overview. 2. Nature of a Term Sheet and Summary of Offering Terms. 3. Dividends. 5. Voting Rights and Protective Provisions. 6. Conversion and Anti-dilution. 7. Pay-to-Play. 8. Redemption Rights. 9. Stock Purchase Agreement. MORE >>
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