Agile VC

APRIL 17, 2011

Interesting to note that Hafner and English own common stock but also made meaningful investments in the Series A & B rounds. Notes: In an IPO preferred share classes are converted into common stock, and liquidation preferences and accumulated but unpaid dividends essentially go away. as of 12/31/09).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

David Teten

JANUARY 19, 2021

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. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

www.paulgraham.com

APRIL 28, 2010

Some angel investors join together in syndicates. Some VCsnow require that in any sale they get 4x their investment backbefore the common stock holders (that is, you) get anything, butthis is an abuse that should be resisted. Theres only common stock at this stage. Startups valuations aresupposed to rise over time.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Tim Keane

APRIL 12, 2006

If the investors ideal size is smaller than your need, you ought to ask about syndication. If they don’t like to syndicate, or don’t have a track record of doing it, you will want to consider your options. Common stock is a vehicle for sharing risk equally with insiders who have more knowledge and ability to affect business results.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

Agile VC

FEBRUARY 2, 2012

As a result, the amount these employees pay the company for these exercises is non-trivial… in 2011 these common stock purchases generated about $1 billion in cash for Facebook. To put that in perspective, Facebook’s overall operations (which are highly profitable) generated about $1.5 billion in cash profit last year.

IPO 100

IPO South Korea Venezuela Revenue 100

Professor VC

JULY 25, 2013

One area I''ve noticed a lot more recently are angel investors and seed stage funds trying to grab a little bit extra, whether it''s warrants for leading the round, advisor shares to go along with the investment, or a common stock stake for just being who they are. The other investor could''ve certainly lobbied to get me an allocation.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Professor VC

MARCH 12, 2015

It was a great product addressing a large market opportunity and was interested in seeing how the AngelList syndicate process worked. Due to confidentiality provisions, I can''t disclose details, but there are many very unhappy participants who invested through the syndicate. Syndicates can either be company led or investor led.

Syndicate 28

Syndicate Syndication Silicon Valley Common Stock 28