Liquidation Preference
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.
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…