Remove Aggregator Remove Finance Remove Founder Remove Preferred Stock
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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. Accordingly, I thought it would be helpful for founders to discuss these rights and to point out the problems they create for startups. This is a huge red flag and founders should push back very hard.

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Investor Nomenclature and the Venture Spiral

K9 Ventures

The founders of these uVC funds are entrepreneurs in their own right – either as people who have founded successful startups before, or as the founders of their own venture funds – which are also startups. In my view this means that these uVCs relate better to founders, creating for a more founder-friendly early stage investor.

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Management Carve Out Plan

ithacaVC

The MCOP can serve a critical role as founders and other management team members are diluted down by rounds of financing or if their equity is not in the money. As the investors’ aggregate liquidation preference (ALP) increases typically the need for a MCOP also increases. A few key points to consider: 1.

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ProfessorVC: Touched by an Angel

Professor VC

While currently free to angel groups, their business model revolves around aggregating the angel investment data. If my math is correct, this is approximately a 31% IRR, which has to beat individual angel investments on aggregate and venture capital returns over the period of the study (1990-2007). return on investment after 3.5

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Startup Resources

www.vccafe.com

.” Hackernews list of “Tools of the Trade” for startups - includes over 150 SaaS tools used by startups, and over 150 comments with interesting insights from founders. easy business finance software. YCombinator Series AA Equity Financing Documents. Founders Institute Plain Preferred Term Sheet â??