Gust

OCTOBER 26, 2011

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Having made it almost to the end of our sample term sheet: Documentation. What seem like boilerplate provisions can be meaningful in some situations.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. As with so many subjects in law and finance, mastering the jargon is half the battle.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

The Startup Lawyer

AUGUST 23, 2010

Startups don’t want to wait until every investor is ready before closing on a seed financing round. Therefore, most seed financings allow for an initial close (i.e., Therefore, most seed financings allow for an initial close (i.e., First, the roster of investors will not be identified and/or cutting checks on the same day.

Finance 70

Finance Deal Structure Sales Startup 70

Gust

OCTOBER 21, 2011

To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision. Suppose the notes converted as if the acquisition were an eligible financing round.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Scott Edward Walker

FEBRUARY 9, 2020

It matters because, unless you understand the motivation of a prospective buyer, it will be very difficult to make informed decisions with respect to critical deal issues. How Is the Deal Structure Different with a Financial Buyer? If you have never done a deal with a financial buyer, you are in for a rude awakening.

Private Equity 59

Private Equity New York City Equity Deal Structure 59

K9 Ventures

OCTOBER 10, 2017

This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. Q: What amount of financing is considered Pre-Seed? It’s a legitimate stage of financing in the venture eco-system as of this writing (October 2017).

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Scott Edward Walker

DECEMBER 13, 2018

We had a busy 2018, including closing several significant M&A transactions and financings. How is the Deal Structured? What Legal Documents are Utilized? We have also recently handled a few “acquihires” (or “acqui-hires”) — which is a somewhat unique transaction, with a host of unusual issues.

Founder 45

Founder Merger IP Liquidation Preference 45