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What happens when a company is acquired for less money than it raised in funding?

Gust

5) Senior Preferred Stock and warrants. 6) Any preference multiple on (5). 7) Junior Preferred Stock and warrants. 8) Any preference multiple on (7). 9) Common Stock (including any Preferred that converted to Common, any exercised options, and all Founders stock) and Common stock warrants.

Warrant 157
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New Survey from Fenwick & West Looks at Angel Funding Landscape

ReadWriteStart

But recognizing that the funding landscape has changed - more angels, more Web startups - this year the firm conducted its first Angel/Seed Financing Survey. The median amount raised in preferred stock financings was $1.1 million and $600,000 in convertible note financings.

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Three Startup Financing Myths You Should Avoid

YoungUpstarts

Going all the way back to Yahoo or Microsoft, the initial products (a directory for a nascent tech called the World Wide Web, and Microsoft BASIC,) didn’t look like billion dollar products at all. The same is true of recent Unicorns like Facebook, Twitter, Slack, Discord, Minecraft and many others. I was wrong.

Finance 168
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When to trade equity for services

The Next Web

For the security, shoot for convertible note or common stock deals, where you can; say no to preferred stock requirements that may impede your ability to raise future capital. This typically comes down to the security, voting rights and valuation of the deal.

Equity 60
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Grubhub and Seamless: Effecting The Elusive Private-Private Merger

abovethecrowd.com

There are common stock, common options, and as many as three to five different layers of preferred stock, each with a specific liquidation preference. android Internet marketplaces Merger Uncategorized Venture Capital Web/Tech grubhub mergers online seamless'

Merger 53
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Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

And for the love of high-speed internet and all things Web 2.0, Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. Leave a Reply Click here to cancel reply.

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The Ultimate Guide to Starting a Software Company

Up and Running

Eric Ries, a Silicon Valley entrepreneur and author of The Lean Startup, popularized this strategy for web applications. I used a freelance web designer and I only created the core functions to create, send, and manage invoices. Delaware permits a single-member board of directors. Pick a name for your business.