Management Preferred Stock Sales Syndication 
Tim Keane
APRIL 12, 2006
We don’t like them and would prefer not to be involved. If the investors ideal size is smaller than your need, you ought to ask about syndication. If they don’t like to syndicate, or don’t have a track record of doing it, you will want to consider your options. Fewer investors will take common stock in early stage transactions.
www.paulgraham.com
APRIL 28, 2010
And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. Some angel investors join together in syndicates. The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains.
www.paulgraham.com
APRIL 28, 2010
You give a startup money and they give you stock. Youllprobably get either preferred stock, which means stock with extrarights like getting your money back first in a sale, or convertibledebt, which means (on paper) youre lending the company money, andthe debt converts to stock at the next sufficiently big fundinground. [
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