Types of security and number of shares issued, price per share

Conversion price: number of common shares per preferred share

Additional formulas

Registration rights: demand rights; "piggyback"; registration expenses; transfer of rights

Use of proceeds

Right of first offer to purchase of new securities.

Stock restriction agreements

Reserved shares

Non-competition agreement

Veto rights: next financings, acquisitions, mergers

 

Ways of Realization of Financial Returns for Investors

Venture Planning

Venture Planning Checklist

Customer Assessment

Venture Model

Financial Assessment

Overall Venture Evaluation and Reality Check

Dealing with Banks

 

 

 

 

Veto rights:

- Sale and other disposition of assets

- Dividends

- Amount of stock issued

- Borrowing and leasing

- Compensation of executive employee staff

- Ownership, sale or access of technology

Rights of inspection

Right to elect board members, attend board meetings

Vesting rights of employees

Receipt of financial statements

Closing expenses

 

Ways to Finance Your Startup

Ideas for Funding Your Startup Business

Private Placements

Venture Map to Financing

Business Planning

The Funding Round

Long Term Capitalization Planning