Steve Blank
APRIL 26, 2022
For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. Venture capital, like most private equity, is an unregulated financial asset class – anything goes. Other times it was simply a take-it-or-leave-it, here are the new terms. ” On one hand they’re right.
Both Sides of the Table
SEPTEMBER 29, 2009
This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. If they wanted to fund a company but other investors didn’t then they got involved in protracted negotiations over issues such as “pay-to-play” provisions.
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Feld Thoughts
SEPTEMBER 8, 2010
In many cases, the consequences for not participating are significant and you can get a taste for this from the post on the term Pay-to-Play that my partner Jason and I wrote in 2005.
ithacaVC
JUNE 28, 2011
Let’s assume that future equity financings will be needed as usually is the case. Pay to play provisions: simply stated, pay to play provisions provide that unless existing shareholders participate in the subsequent financing unfavorable things happen to their existing stock. Here are few: 1.
Tim Keane
JANUARY 12, 2010
The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay. Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.
The Equity Kicker
MARCH 18, 2014
The free-to-play model is far more effective for monetization than a pay-to-play model. The macro way of building looks at characteristics and trends in the broader market. The private messaging space is blowing up. Anonymous and/or ephemeral content is huge.
blog.simeonov.com
FEBRUARY 22, 2010
It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. The number of separate documents may vary but they fall into two categories: Those related to equity, typically a restricted stock purchase agreement (RSPA) and associated escrow and other agreements.
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