Covenant and Syndication

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Covenant

Syndication

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

JANUARY 19, 2021

Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . Most Flexible VCs lead rounds and often take 100% of the round to mitigate this risk. Governance.

Cofounder

Cofounder Technical Review Equity Dividend

Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

JULY 9, 2017

The easiest way to do so is via SAFE notes, due to their simplicity, “available online” documentation, no major covenants established to protect the investors, no governance implications at the board level, etc. All of these items are postponed until the elusive priced equity round. It’s going to be great!”.

Post-Money Valuation

Post-Money Valuation Valuation Cap Table Covenant

StartUpRoar

Flexible VC, a New Model for Companies Targeting Profitability

Unintended Consequences: When SAFE and Convertible Notes Go Awry

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