article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The shares given out can either be common stocks or preferred stocks. ? Debt investment. It is essential to understand the funding structure stated in your term sheet and the advantages and disadvantages it may have for your business. Government programs.

Startup 150
article thumbnail

Venture Capital Term Sheets – Redemption Rights

Scott Edward Walker

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. Redemption Rights What Are Redemption Rights? What Does a Redemption Rights Provision Look Like?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). This post assumes that you have a basic understanding of Series A financing terms. There is no real rule to what a particular series of preferred stock is called.

Finance 70
article thumbnail

Ask the VC Bonus Material

Feld Thoughts

Now, while I’d like to be able to simply do all of my financings with a handshake, or possibly on a napkin written in crayon, I also wish I had a herd of unicorns, surrounded by rainbows, a balanced US government budget, and agreement on how to address the debt ceiling issue. Series A Preferred Stock Purchase Agreement.

article thumbnail

Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Having made it almost to the end of our sample term sheet: Documentation. Returning to our sample term sheet: Note Purchase Agreement.

Finance 79
article thumbnail

How to Fund a Startup

www.paulgraham.com

At one extreme is the sort of pork-barrel project wherea town gets money from the state government to renovate a vacantbuilding as a "high-tech incubator," as if it were merely lack ofthe right sort of office space that had till now prevented the townfrom becoming a startup hub. 6 ]Ive omitted one source: government grants.

article thumbnail

What Are the Rights of Minority Stockholders?

Scott Edward Walker

Indeed, whether a minority common stockholder is a founder, an advisor or even a friends/family investor, such stockholder will usually not be contractually granted any of the rights that are typically granted to preferred stockholders. Accordingly, I thought it would be helpful to examine these non-contractual rights.