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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Early liquidity. Governance.

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How to Form a Corporation

Up and Running

Because of its popularity, Delaware is also statistically a popular state for investors to finance businesses. Finally, they will outline the next two steps we’ll discuss below: board meetings and distribution of shares. . This article will not delve into the more complex options and requirements for a corporation’s stock.

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What’s a Fair 409A Discount?

VC Adventure

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Graham also pushes for common stock, the right to participate in future funding rounds to preserve the size of the stake, and a guaranteed seat on the board. Start-up | Mondays. Technology | Thursdays. Franchises.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   First , dividends.   Why is this fair? .

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How Startup Valuations are Driving Company Equity

ReadWriteStart

Common stock. The holding of common stock in a company indicates ownership in the corporation. Investors of common stock are eligible for : The choice of the Board of Directors. However, the holder of a warrant holds a leveraged bet on the corporation’s common shares. Preferred shares.

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