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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

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The Truth About Investor Updates

Haystack

Contrast that with the ones where it’s difficult to pull clear information out of — those startups don’t make it into the conversation unless it’s obvious to everyone things are working. For angels and early-stage pre-seed and seed firms, most of those financings do not come with information rights.

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What is convertible equity (or a convertible security)?

Startup Company Lawyer

One major concern about convertible debt is that it eventually needs to be repaid if another round of financing doesn’t occur. ” If the company didn’t raise a round of financing, the convertible debt would convert into the last round of financing (i.e. Series A) or have to be repaid.

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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

There’s another issue I can add to your list of things to be aware of – information rights. Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more).

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How to Evaluate Firms for a Seed VC Syndicate

Genuine VC

Active partner involvement level of lead partner post-financing – Venture firms approach involvement after a seed round wildly differently. Board seat requirements – Partner involvement post seed financing can, but doesn’t always, require codification with a board seat. larger check writers have a greater tendency to lead rounds).

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Thoughts on Convertible Notes

K9 Ventures

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.

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What are the terms of Yuri Milner/SV Angel’s Start Fund $150K investment into Y Combinator companies?

Startup Company Lawyer

Automatic conversion: on a $1M equity financing with no conversion discount and no price cap , provided that the transaction documents provide for a right to purchase a pro rata share of future financings. (I Optional equity conversion: on other equity financings with no conversion discount and no price cap.