Valuation Caps on Convertible Notes
I’m not a big fan of valuation caps when convertible notes are used to seed companies. There are two reasons for this: first, we are increasing the number of negotiation and drafting points in these types of deals. Second, it just goes too far in favor of the investors. The
Term Sheet 101: Price-Based Anti-Dilution
Price-based anti-dilution provisions are perhaps the most esoteric and difficult provisions in a venture capital or sophisticated angel preferred stock financing (certainly from a drafting perspective in the corporation’s Certificate of Incorporation). In a nutshell: the Preferred Stock is convertible into common stock. The underlying common stock of the Preferred
The liquidation preference means, generally, that the investors holding Preferred Stock will receive their money back in full upon a liquidation of the corporation, including a deemed liquidation which includes ...
If you want to send your executive summary to an investor, don’t ask for a non-disclosure agreement. I was trying to help a company get in front of an investor ...
1. Not Incorporating One of the biggest mistakes new businesses with multiple owners make is not forming a corporation or LLC. The reason is simple—forming the LLC or Corporation forces you ...
Last week, we discussed some ways in which entrepreneurs can effectively lose the right to pursue patent protection for their potentially patentable ideas. Namely, by offering a product or service ...
Convertible Notes can be a useful structure for raising early-stage capital, either as initial seed capital or in between equity financings, but how do you know whether you should issue ...
The Villhard Patent Group cordially invites followers of this blog (and their colleagues) to a series of intellectual property seminars to be held during Austin RISE Week 2012. The Business ...
I’m a litigation attorney. Much of my practice is business litigation and disputes between partners—whether that means partners in a legal entity or partners in the more general sense of ...
It is a rare pleasure when a new entrepreneur (or one with a new product/service) approaches an Intellectual Property (IP) Attorney with concurrent requests for trademark (TM) and prior art ...
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