A liquidation preference is a right that one class of stockholders may have to be paid ahead of other class(es) of stockholders in the case of a liquidation of the company.
Key insights from Asad Khaliq On the most exciting advancements in technology right now: “Cybersecurity is unique in that progress is driven not just by technological improvements, but also by…
While investors generally are aware that mergers and acquisitions can require antitrust filings in the United States under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act), they are sometimes surprised to…
This article defines what a ‘Drag-Along’ is
Preferred Stock (like Common Stock) is a security that represents ownership in a corporation. In addition to the ownership interest, Preferred Stock has rights that Common Stock does not.
In conjunction with our Q2 Venture Financing Report, I sat down with Michael Lints of Golden Gate Ventures to get his take on the state of venture capital investing. Key insights…
What is a Down Round? A “down round” is a financing in which a company sells shares of its capital stock at a price per share that is less than…
With India’s strong ties with Silicon Valley and its maturing tech and startup ecosystem, outside investments in Indian companies are becoming increasingly common. However, the Indian economic and legal regime…
Drag-along rights enable majority shareholders to “drag along” minority shareholder shares in an acquisition.
Units of equity ownership in a corporation entitling their holder to a share of the corporation’s success through dividends and/or capital appreciation.
Many thanks to Al Browne for his contributions to this article. Whether you are a founder or venture investor sitting on the board of a portfolio company, you have fiduciary duties to…
Congratulations! You just received an offer to acquire your company. A serious buyer will present you with a term sheet that covers the basic terms of the transaction. Do not…
This article briefly introduces each of the principal business forms in the United States, namely corporations, partnerships, LLCs and sole proprietorships. More detailed considerations and strategies in making an appropriate…
Control is a critical component of every venture capital deal. Control can be used to dictate desired outcomes or, through “negative controls,” to block undesired outcomes. Negative controls are typically…
Focus on what’s important, negotiate and resolve the important points early, get the deal closed as quickly as possible and get back to growing the company. When you receive a…
“Friends and family” financings: tapping your personal network Entrepreneurs often need only modest amounts of capital in the early stages to cover expenses incidental to the business. Sometimes entrepreneurs cover…
In conjunction with our Q2 Venture Financing Report, I sat down with Suranga Chandratillake from Balderton Capital to get his take on the state of venture capital investing. A few…
An S Corporation is the same as any other corporation except for the manner in which it is taxed. S Corporations generally do not pay United States federal corporate income…
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