The Startup Toolkit

NOVEMBER 4, 2011

Next, we check that we’re safe from any particularly onerous terms like participation preferred. The former means your friends won’t hear about your company until the acquisition. What’s the dilution? Can I make those numbers bigger and smaller, respectively? Looks good. your website.

Term Sheet 31

Term Sheet Dilution Participating Preferred B2C 31

The Startup Toolkit

NOVEMBER 4, 2011

Next, we check that we’re safe from any particularly onerous terms like participation preferred. The former means your friends won’t hear about your company until the acquisition. What’s the dilution? Can I make those numbers bigger and smaller, respectively? Looks good. your website.

Term Sheet 20

Term Sheet Dilution Participating Preferred B2C 20

Startup Company Lawyer

FEBRUARY 21, 2010

Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless. I was speaking at an event last month to a group of CEOs and was surprised by the number of CEOs that were worried about the value of their common stock in a M&A transaction.

Retention 31

Retention Liquidation Preference Employee Common Stock 31

www.payne.org

SEPTEMBER 22, 2011

(In some cases, usually when the company is in a weak position to raise money, there may be "preference multiple" where the preference is larger than the share purchase price). Common stockholders should care about the preference, because that preference is "ahead" of the commons in any acquisition outcome.

Equity 56

Equity Employee Vesting Preferred Stock 56

Scott Edward Walker

NOVEMBER 26, 2017

It’s the same with acquisitions. If an investor knows you have other investors lined up, he’ll be a lot more eager to close — and not just because he’ll worry about losing the deal, but because if other investors are interested, you must be worth investing in.

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

thinkspace.com

SEPTEMBER 7, 2012

Is the preference structure for preferred shareholders at the startup you work at Standard Preferred or Participating Preferred? Should your startup be acquired, do you have legal control over what role, title and responsibilities you’ll have post-acquisition?

Equity 62

Equity Employee Founder CTO Hire 62

ConversionXL

MAY 31, 2016

This is great news for call-based businesses like Esurance, which used click-to-call to increase call volume by 200% and decrease cost per acquisition by 30%. Furthermore, the same study found that an incredible 100% of participants preferred sites with sticky navigation bars, despite often not knowing why.

Mobile 48

Mobile Conversion Design Participating Preferred 48