article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Let’s take an example – In the case of an internet or app business, the user traction and market penetration is a must. The shares given out can either be common stocks or preferred stocks. ? Debt investment. Moreover, there is always a possibility of a future merger and consolidation. Stages of Funding.

Startup 150
article thumbnail

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159
Insiders

Sign Up for our Newsletter

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

article thumbnail

5 Keys To Mitigating New Venture Tax And Legal Issues

Startup Professionals Musings

You may start as an LLC but find that a potentially high-value investor insists on having preferred stock, which is only available with a C-Corp. Also, mergers, acquisitions, and alliances with other companies almost always drive the need to modify your organizational entity for legal or operational purposes.

LLC 210
article thumbnail

Grubhub and Seamless: Effecting The Elusive Private-Private Merger

abovethecrowd.com

As Benchmark is a large institutional investor in Grubhub, we were actively involved in the merger process, and we are quite excited about the potential of the two companies coming together. There are common stock, common options, and as many as three to five different layers of preferred stock, each with a specific liquidation preference.

Merger 53