Issued Shares, Liquidation Preference and Naming

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Issued Shares

Liquidation Preference

Naming

Using warrants to pump up your VC valuation

www.mattbartus.com

DECEMBER 9, 2012

Prior to the VC’s exercise of the warrants, the founders will actually own 67% of the issued shares because the warrant shares are not outstanding until the warrants are exercised. I've just seen many startups unhealthily focus on the valuation versus things such as the liquidation preference or board control.

Warrant

Warrant Valuation Pre-Money Valuation Term Sheet

Venture Capital Term Sheets: Conversion Rights

Scott Edward Walker

JUNE 9, 2011

As many of you know, VC investors are typically issued shares of preferred stock, not common stock. Indeed, preferred stock, as the name suggests, is preferable to (and more valuable than) common stock because it grants certain key rights to the holders, one of which is a conversion right.

Term Sheet

Term Sheet Conversion Rights Venture Capital Liquidation Preference

StartUpRoar

Using warrants to pump up your VC valuation

Venture Capital Term Sheets: Conversion Rights

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