Scott Edward Walker
JUNE 9, 2011
Conversion Rights What Are Conversion Rights? Indeed, preferred stock, as the name suggests, is preferable to (and more valuable than) common stock because it grants certain key rights to the holders, one of which is a conversion right. There are two types of conversion rights: optional and mandatory.
Bryce Dot VC
MARCH 5, 2015
terms is the option for founders to make cash distributions to investors from profits as a return on their investment instead of selling out or taking their company public to create a liquidity event. model, founders who choose not to sell out or raise money from traditional VCs have the option to make cash distributions to investors.
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David Teten
JANUARY 19, 2021
Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Capacity Capital, Greater Colorado Venture Fund, Indie.VC, Reformation Partners, UP Fund, Versatile VC. Early liquidity.
Duct Tape Marketing
JANUARY 2, 2024
And the way they're doing that is that they calculate what are called probability distribution. (09:35): And the way they're doing that is that they calculate what are called probability distribution. (09:35): If you think about how we communicate, we are having a conversation right now. That's all they're doing.
Duct Tape Marketing
JUNE 29, 2023
And the word, the way they're doing that is that they calculate what are called probability distribution. (10:31): If you think about how we communicate, right? You know, we're having a conversation right now. I think when you ask me a question, I, I pause and I think about what I'm about to say, right?
Scott Edward Walker
MAY 15, 2012
2) Conversion Right (Investor-Friendly). There are variations and complicated language that are typically negotiated to address the conversion right; however, the bottom line is that the noteholders would be able to share in any upside if the startup were acquired. Using our example above, and assuming a 1.0x
Scott Edward Walker
JULY 7, 2011
Redemption Rights What Are Redemption Rights? A redemption right is another feature of preferred stock and permits the investors to require the company to repurchase their shares after a specified period of time; it is, in effect, a “put” right – that is, the investors may elect to put their shares back to the company.
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