Startup Professionals Musings

JANUARY 27, 2012

This clause attempts to protect the conversion price of stock of Angel investors, prior to additional financing, from being reduced to a price equal to the price per share paid in a later “down” round. Liquidation preference. These “IV drip” financings may reduce risk for investors, but put more pressure on founders.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 223

Startup Professionals Musings

SEPTEMBER 14, 2010

This clause attempts to protect the conversion price of stock of angel investors, prior to additional financing, from being reduced to a price equal to the price per share paid in a later “down” round. Liquidation preference. These “IV drip” financings may reduce risk for investors, but put more pressure on founders.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

OCTOBER 17, 2011

This clause attempts to protect the conversion price of stock of angel investors, prior to additional financing, from being reduced to a price equal to the price per share paid in a later “down” round. Liquidation preference. These “IV drip” financings may reduce risk for investors, but put more pressure on founders.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 158