Gust

OCTOBER 5, 2011

In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation. This paragraph is the heart of the whole deal.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Gust

OCTOBER 21, 2011

In Parts II and III, we looked at commonly used mandatory and voluntary conversion language in convertible notes. To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision. Not too shabby.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Gust

OCTOBER 26, 2011

The purchase agreement sets forth the terms of the investment, often including the mandatory and voluntary conversion provisions we’ve covered in this series, as well as customary representations and warranties of the Company and the investors. See discussion of amendments below.) merger or acquisition).

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

YoungUpstarts

MAY 9, 2019

Initial conversations (known in the industry as “fireside chats”) may take place to generate interest with a select group of potential buyers. By the same token, using a competent accountant for tax advice can help you maximize the deal structure to limit your tax exposure and maximize the cash potential in the sale.

Private Equity 113

Private Equity Equity Investment Bankers Government 113

VC Adventure

OCTOBER 8, 2012

When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around deal structures. of the pre-money is actually the debt conversion). Seemed like a good topic to cover here.

Cap Table 48

Cap Table Dilution Equity Deal Structure 48

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

The conversation went like this: HIM: They offered me $X, but I wonder whether I could make the same money if I just kept the company. One of the best ways to arm yourself going into negotiations is to know this number and be prepared to blow up the entire deal if it cannot be met. Where to start? Collapsing the possibilities.

Sales 235

Sales Term Sheet Stock Deal Structure 235

Hunter Walker

JULY 4, 2023

A few reads for an American holiday Uncle Sam reading a magazine while an eagle sits on his shoulder, digital art In Conversation with 50 Cent (Carvell Wallace/Vulture) – 20 years later and reading his name still triggers memories of In Da Club’s opening beats. And it changed the way artists look at deal structures.

Texas 78

Texas Jordan Deal Structure Washington 78