Gust

NOVEMBER 15, 2012

NONE of that is available with seed stage startups, so that even IF it were legally and economically viable to trade them, and even IF there were analysts who followed every public move the company made, there still would be no way whatsoever for anyone outside the company (or Major Investors, if they have Information Rights) to have the slightest (..)

Seed Stage 131

Seed Stage Hockey Stick Cap Table Liquidation Preference 131

Genuine VC

JULY 10, 2012

In both cases, the amount of time spent is generally inversely proportional to the number of new seed investments the firm does a whole each year. Board seat requirements – Partner involvement post seed financing can, but doesn’t always, require codification with a board seat.

Syndicate 207

Syndicate Syndication Seed Stage Portfolio 207

Startup Company Lawyer

AUGUST 31, 2012

” The theory is that the number of seed stage Series A deals led by venture capital firms is decreasing, meaning that it will be difficult for startups to raise a new round of financing. I’m not sure that founders really prefer to do convertible debt in order to avoid giving away these rights.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Startup Company Lawyer

MARCH 14, 2010

I think that there are certain situations where the Series Seed and other stripped down equity financing documents might be appropriate, but I know that there are lots of situations where early-stage investors probably wouldn’t agree to the Series Seed terms. Right of first offer on future financings. Series Seed.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

View from Seed

JANUARY 11, 2017

Normally I would counsel seed stage companies not to take strategic investment but that wasn’t the case here. Most corporate VCs today understand the rights and responsibilities of startup minority shareholders, and don’t try to push for onerous requirements like ROFR on an acquisition or egregious information rights.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

K9 Ventures

MARCH 23, 2011

There has been a lot of noise in the Valley lately about how most seed stage deals are now being done as convertible notes. In fact, PG from Y Combinator has proclaimed that that it is how things will be going forward. That might well be so, but I for one am not a fan of convertible notes.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Austin Startup

MAY 17, 2017

Know the difference between a Board Observer, Information Rights, and being a member of the Board of Directors. Most angel investors writing small checks are buying the right to a small portion of the Company, and that’s it. Angels / Seed Funds who write larger checks may want a deeper view into what’s going on in the company.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48