Funding
What are the benefits held by preferred stockholders in a venture investment?
In this video, MoFo partner Tim Harris lists the typical rights, preferences, and privileges given to preferred stockholders in a venture investment.
Selecting the right legal structure is one of the most important initial decisions made by a founder.
View Articles »Understanding the ins and outs of capital raising is crucial to a startup’s success.
View Articles »Many legal issues come into play as a company expands.
View Articles »Protecting IP is one of the most vital concerns for any startup.
View Articles »Many founders aim for a successful exit, either through a sale or IPO.
View Articles »In this video, MoFo partner Tim Harris lists the typical rights, preferences, and privileges given to preferred stockholders in a venture investment.
Navigating your first preferred stock term sheet can be daunting considering the numerous provisions associated with negotiating with institutional investors. Finalizing a term sheet quickly and effectively involves understanding a few steps and lessons to streamline the process like understanding which terms are most important and why, determining market ranges for the terms, concentrating efforts on improving the terms and not assuming a non-binding term does not matter.
In recent years, investors have increasingly asked for valuation “caps” in convertible note financing rounds. This article explains the rationale for these caps and the options for founders looking to raise capital through convertible notes.
This article was originally published on Octane blog, the official online publication of the Entrepreneurs’ Organization. It has been reposted here with permission.