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What are the regulatory barriers preventing the emergence of a liquid market for equity in seed stage startups?

Gust

Parts of the answer are that (a) there are enormous regulatory requirements relating to secondary markets, and (b) there are no analysts tracking private company stocks.

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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

Optional maturity conversion : into Series AA Preferred Stock based on a $5M valuation. Please note that these are generally the terms of the Series AA Preferred Stock financing documents that Y Combinator previously published.).

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Thoughts on Convertible Notes

K9 Ventures

Notes may have fewer rights associated with them, but they come with one big hammer. It is in essence equivalent to being a Liquidation Preference that is typically seen in a preferred equity financing. Legally, the note is still a debt instrument and can be called upon maturity. There are a lot of moving parts.