Haystack

JULY 4, 2019

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.

Early Stage 167

Early Stage Deal Flow Finance Metrics 167

Startup Company Lawyer

AUGUST 31, 2012

Ted Wang believes that the “reason that capped convertible debt is the current market leader is that entrepreneurs have been conditioned over time to believe that convertible debt is (a) faster (b) cheaper and (c) better for them than equity investment.” Series A) or have to be repaid.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

Both Sides of the Table

NOVEMBER 9, 2014

We all know that funding markets have changed for startups. I have blogged about some of the downside consequences of the changes and the private information I have says the consequences are much worse than is reported in the press since few people publicly talk about. What is less understood are the consequences of these changes.

SEC 352

SEC Venture Capital Early Stage Cofounder 352

Genuine VC

JULY 10, 2012

Reaching a decision between the above two options is a post for another day, but when entrepreneurs select the latter route, they are then faced with the daunting task of navigating the murky waters of the myriad of firms who at least market themselves as active seed venture capital investors.

Syndicate 207

Syndicate Syndication Seed Stage Portfolio 207

Austin Startup

MAY 17, 2017

Given that the time from formation to Series A has stretched out significantly for many companies in the market — due to pre-seed, seed, seed plus, seed premium, series seed, seed platinum diamond, whatever-you-want-to-call-not-Series A rounds. A step up from ‘information rights’ is a Board observer right.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48

K9 Ventures

MARCH 23, 2011

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.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Startup Company Lawyer

JANUARY 31, 2011

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.

Preferred Stock 60

Preferred Stock Liquidation Preference IPO Common Stock 60