Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating.
ReadWriteStart
JUNE 1, 2020
The shares given out can either be common stocks or preferred stocks. ? Debt investment. Instead of funding, you pay the investors a structured royalty, which is a portion of the sales. This makes the existing investors extremely unhappy and tarnishes the market reputation of the company.
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Berkonomics
JANUARY 6, 2022
First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.
Berkonomics
OCTOBER 1, 2015
Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.
Both Sides of the Table
SEPTEMBER 5, 2012
They are either a sign of naive founders or naive investors (because they will quickly develop a reputation in the market and because future investors in that company will all demand your terms, which therefore will include a full ratchet). What happens in a sale or acqui-hire? So they'll feel cheated. Is there way around this?
www.paulgraham.com
APRIL 28, 2010
One of the dangers of taking investment from individual angels,rather than through an angel group or investment firm, is that theyhave less reputation to protect. 5 ] Another danger of less known firms is that, like angels, they haveless reputation to protect. Most only come into effect if the company gets intotrouble.
www.vccafe.com
MARCH 11, 2013
turn customer feedback into sales and relationships. SaaS Sales Team Compensation â?? UCL has built a reputation as a pioneer of collaboration between industry and academia. Preferred Stock Purchase Agreement. Startups For Sale. SnapEngage â?? live chat integrates with your apps. Zendesk â?? UserVoice â??
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