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 >>

While there aren’t many issues to negotiate in simple equity financing at that stage, there’s been some debate in the venture capital and angel community on whether startups should use series seed documents or capped convertible debt. Preferred Stock Purchase Agreement  Series Seed Form SPA. MORE >>

Always looking for ways to better serve the entrepreneurial community, Wilson Sonsini Goodrich & Rosati is pleased to announce the release of the WSGR Term Sheet Generator , a publicly available online tool that allows entrepreneurs and investors to generate an initial draft of a term sheet for a preferred stock financing. MORE >>

Price-based antidilution protection reduces the dilutive effect on an investor of a later financing at a lower valuation (a “down-round” financing). There are two types of antidilution protection often found in angel and VC financings: full ratchet and weighted average. Tags: Financing Legal Basics MORE >>

Price-based antidilution protection reduces the dilutive effect on an investor of a later financing at a lower valuation (a “down-round” financing). There are two types of antidilution protection often found in angel and VC financings: full ratchet and weighted average. Tags: Financing Legal Basics MORE >>