Remove Common Stock Remove Finance Remove Sales Remove Syndication
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate.

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Ten questions the entrepreneur should ask the (prospective) investor

Tim Keane

What’s your attitude about “next round” financing? 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.