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The Legal Side of Entrepreneurship

YoungUpstarts

Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Convertible Securities.

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WHAT ARE SUPER PRO RATA RIGHTS?

Scott Edward Walker

Over the past few weeks, two of my clients have received financing term sheets in which the investors requested super pro rata rights. For example, an investor that agrees to purchase 20% of the equity in a Series A round requests the right to purchase up to 50% of the subsequent Series B round. Introduction. Pro Rata Rights.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

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The Pre-Seed FAQ

K9 Ventures

I’ve been an avid reader of Dan’s Term Sheet while he was at Fortune , and now Pro Rata at Axios. Typically, Pre-Seed rounds are less than $1M in aggregate capital raised. Q: Does a Pre-Seed require founders to give up more equity in the company? Q: What amount of financing is considered Pre-Seed? Q: Is Pre-Seed a Thing?

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10 Recommendations For Aspiring New Venture Investors

Startup Professionals Musings

Today most startup investors still register with the SEC as “ accredited ” investors before they buy any startup equity in the U.S. These requirements for equity investing have been relaxed only a bit, with caveats, with relevant crowdfunding changes. These may be aggregated by an angel group up to about $1M for an angel round.

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Series Seed Financing Documents

www.seriesseed.com

.  That’s because there are not that many issues to negotiate in a simple equity financing.   Based on the comments received, both on the blog and in the many deals in which these documents have been used, I am convinced that the terms of a simple set of equity documents are really not an issue. 

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10 Keys To Making Money By Investing In Entrepreneurs

Startup Professionals Musings

Today most startup investors still register with the SEC as “ accredited ” investors before they buy any startup equity in the U.S. These requirements for equity investing have been relaxed only a bit, with caveats, with recent crowdfunding changes. These may be aggregated by an angel group up to about $1M for an angel round.