LBO: Antidilution Protection For Investors

Recent Buzzes - VC Experts, Inc.

In the "modern era" of venture capital (1970 and beyond) the so–called anti–dilution provisions have become increasingly important. Like so many words in the glossary of venture capital, "dilution" has multiple meanings. The core concept, however, arises from a central fact: any new claimant to the assets and/or income of a firm reduces the percentage interests of the existing claimants

Top Ten Posts in 2011

Scott Edward Walker

What Is A Price-Based Antidilution Adjustment? Miscellaneous antidilution crowdfunding legal checklist liquidation preference no shop startup startups term sheetsBelow is a list of my top ten posts in 2011 based solely on pageviews. Indeed, I was inspired by Chris Dixon and his post of last night (which you should definitely check-out). Moreover, I’m publishing an eBook with Hyperink entitled The Startup Law Playbook , which should be available shortly.

Trending Sources

Price-based antidilution protection

VC Ready Blog

Price-based antidilution protection reduces the dilutive effect on an investor of a later financing at a lower valuation (a “down-round” financing). Price-based antidilution protection of some sort is a characteristic of most preferred stock and operates by increasing the number of shares of common stock into which a share of preferred stock converts (i.e. There are two types of antidilution protection often found in angel and VC financings: full ratchet and weighted average.

Price-based antidilution protection

VC Ready Blog

Price-based antidilution protection reduces the dilutive effect on an investor of a later financing at a lower valuation (a “down-round” financing). Price-based antidilution protection of some sort is a characteristic of most preferred stock and operates by increasing the number of shares of common stock into which a share of preferred stock converts (i.e. There are two types of antidilution protection often found in angel and VC financings: full ratchet and weighted average.

Price-based antidilution protection

VC Ready Blog

Price-based antidilution protection reduces the dilutive effect on an investor of a later financing at a lower valuation (a “down-round” financing). Price-based antidilution protection of some sort is a characteristic of most preferred stock and operates by increasing the number of shares of common stock into which a share of preferred stock converts (i.e. There are two types of antidilution protection often found in angel and VC financings: full ratchet and weighted average.

Is My Company Really Worth More Than The New York Times?

Inc Startups

Other preferences include the right to accrued dividends, guaranteed seats on the board of directors, antidilution protection in the event that the company loses value, and veto power over important business transactions. Evernote CEO Phil Libin ponders his company's billion-dollar valuation.

allensblog: "Fully-Diluted"

Allen's Blog

allensblog. Thoughts from a startup sherpa. Archives. Profile. Subscribe. « DSK & The US Criminal Justice System (Oh, and the Media, too). Whats a Home Run (in VC-speak) » July 12, 2011. Fully-Diluted". In a deal recently, the term sheet offered by the prospective investor contained a reference to the term: "fully-diluted" The company accepted the term sheet and the lawyers drafted the documents.

Venture Capital Survey - Silicon Valley Fourth Quarter 2010

Recent Buzzes - VC Experts, Inc.

Antidilution Provisions. The uses of antidilution provisions in the financings were as follows: Type of Provision. By Barry J. Kramer and Michael J. Patrick of Fenwick & West LLP. Background - Fenwick & West LLP analyzed the terms of venture financings for 95 companies headquartered in Silicon Valley that reported raising money in the fourth quarter of 2010. Overview of Fenwick & West Results. Up rounds exceeded down rounds in 4Q10 67% to 21%, with 12% of rounds flat.

Venture Capital Survey Silicon Valley Second Quarter 2011

Recent Buzzes - VC Experts, Inc.

Antidilution Provisions - The uses of antidilution provisions in the financings were as follows: Type of Provision. By Barry J. Kramer and Michael J. Patrick of Fenwick & West LLP. Background Fenwick & West LLP analyzed the terms of venture financings for 117 companies headquartered in Silicon Valley that reported raising money in the second quarter of 2011. Overview of Fenwick & West Results. Up rounds exceeded down rounds in 2Q11 61% to 25%, with 14% of rounds flat.

Q&A Roundup

Secret Formula

I’ve gotten a ton of feedback on the “state of cleantech VC” series – thanks so much to everyone who reached out! I’ve found myself discussing some of the same points with different people more than once, so I figured it would be useful to follow up on them here. Q: Do you have a PDF of this stuff?

Venture Capital Survey - Silicon Valley Third Quarter 2010

Recent Buzzes - VC Experts, Inc.

Antidilution Provisions. The uses of antidilution provisions in the financings were as follows: Type of Provision. By Barry J. Kramer and Michael J. Patrick Fenwick & West LLP Background - Fenwick & West LLP analyzed the terms of venture financings for 107 companies headquartered in Silicon Valley that reported raising money in the third quarter of 2010. Sound off on this buzz in the Comments Section. Overview of Fenwick & West Results.

Fenwick & West Venture Capital Survey - Silicon Valley Second Quarter 2010

Recent Buzzes - VC Experts, Inc.

Antidilution Provisions. The uses of antidilution provisions in the financings were as follows: Type of Provision. By Barry J. Kramer, Partner, and Michael J. Patrick, Partner, at Fenwick & West LLP Introduction. Background - Fenwick & West LLP analyzed the terms of venture financings for 126 companies headquartered in Silicon Valley that reported raising money in the second quarter of 2010. Sound off on this buzz in the Comments Section. Overview of Fenwick & West Results.