The Equity Kicker

NOVEMBER 9, 2016

For these reasons our investments at Forward Partners are always in ordinary shares. However, most of the later rounds or companies raise feature simple 1x liquidation preferences and we’re fine with that. To explain why I’m going to look at the role liquidation preferences play in getting deals done.

Liquidation Preference 122

Liquidation Preference Silicon Valley Participating Preferred Common Stock 122

The Equity Kicker

JANUARY 25, 2016

In the ecommerce and marketplace markets Forward Partners operates in growth is limited because business has to scale country by country. Scale is everything, and all else should be sacrificed for it. I would say there is some truth in all three myths but not enough to make them useful rules of thumb.

Venture Capital 60

Venture Capital Angel Investor Startup Participating Preferred 60

Startup Company Lawyer

MARCH 14, 2010

I was actually somewhat surprised that the following investors have agreed to use the Series Seed documents in certain of the their deals: Baseline, Charles River Ventures, SV Angel (Ron Conway), First Round Capital, Harrison Metal Capital, Mike Maples, Polaris Venture Partners, SoftTech VC and True Ventures. Limited protective provisions.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Professor VC

JULY 25, 2013

Yes, there are a number of cases in the middle where having a senior or participating preference does make a difference in liquidation proceeds, but I argue that it does very little to overall returns in a diversified portfolio. Unfortunately, not everyone follows the KISS principle.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Both Sides of the Table

APRIL 14, 2010

Once you cross the threshold where their percentage ownership would be worth more than the value of their preference they “convert&# their preferred stock into common stock and take their proceeds pari passu (along side and on the same terms as you) with the common stock holder.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

thinkspace.com

SEPTEMBER 7, 2012

That’s where a good partner agreement comes into play. Not only do you want to allocate ownership, but you want to re-allocate ownership if either partner fails to deliver. How do you determine what the third partner’s equity share should be? . Peter, this is a great approach for founder equity. link] Peter Chee.

Equity 62

Equity Employee Founder CTO Hire 62