Growthink Blog

MAY 10, 2012

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

The Startup Lawyer

FEBRUARY 4, 2011

Most incubators take common stock and sit “side-by-side&# with the founders, but some may want some (weak) preferred stock and/or dilution protection. Like any issuance of stock or investment, one of the main things a startup should be concerned with is: Is this going to fuck up a future financing ?

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Scott Edward Walker

JUNE 9, 2011

As many of you know, VC investors are typically issued shares of preferred stock, not common stock. Indeed, preferred stock, as the name suggests, is preferable to (and more valuable than) common stock because it grants certain key rights to the holders, one of which is a conversion right.

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

Up and Running

SEPTEMBER 20, 2021

Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

ithacaVC

DECEMBER 13, 2013

They are typically pretty simple: (i) shares owned by founders and (ii) shares authorized for issuance in a stock option pool, some of which may be issued to employees already and some of which will be available for future issuance. QUESTION #1: This leads to our cap table clean up question #1, namely is that the right allocation?

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

Growthink Blog

APRIL 7, 2010

For those of you who don't understand the term "Series A," the Series A round is the name given to your first significant round of venture financing. The name "Series A" refers to the class of preferred stock that you sell to investors in return for their cash.

Angel Investor 54

Angel Investor Preferred Stock Common Stock Venture Capital 54

The Entrepreneurial Mind

MARCH 10, 2010

In return for this investment, JumpStart Foundry will receive a collective 10% ownership in the Common Stock of the company. According to founding member Scott Kozicki, "the JumpStart Foundry name is meant to be symbolic of our two-fold mission. Microfunds are part of the changing landscape in new venture financing.

Nashville 53

Nashville Tennessee Early Stage Common Stock 53

www.payne.org

SEPTEMBER 22, 2011

Stock Classes: Common and Preferred. Most venture-funded startups have different classes of stock: common and various flavors of preferred. Your offer will almost surely be for common stock. By convention, preferred stock classes are lettered, increasing for each round of funding: Series A, Series B, etc.

Equity 56

Equity Employee Vesting Preferred Stock 56

Professor VC

JULY 25, 2013

I''m all for transparency, but won''t be naming names in this post as I don''t want to put some entrepreneurs in a difficult position. Finally, I have to bring up some bad behavior by a name Sand Hill Road firm (SH). Angel Investors Silicon Valley term sheets venture financing venture capital'

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Austin Startup

MAY 17, 2017

Giving someone a seat on your Board of Directors is 100x more consequential to the company than naming them an advisor. They’ll often ask for different variants of ‘information rights’ — which can include delivery of regular financials, and notification of major transactions (like financings). Big difference.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48

Startup Company Lawyer

APRIL 23, 2009

Adeo was focused on creating mechanisms to protect founders who may lose control of the companies they created after raising financing from investors. The current customary form of venture financing documents has not changed much since with mid-1970s when they first became widely adopted in Silicon Valley. Protective provisions.

Common Stock 33

Common Stock Stock Dividend Delaware 33