Comments on: What is Preferred Stock? http://startuplawyer.com/preferred-stock/what-is-preferred-stock Startup Law, Incorporation, Convertible Notes, Preferred Stock, Stock Options, Venture Capital Sun, 22 Jan 2012 19:35:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Angel Investors: Give Them Common or Preferred Stock? http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-10402 Angel Investors: Give Them Common or Preferred Stock? Sun, 03 Jul 2011 08:47:15 +0000 http://www.thestartuplawyer.com/?p=182#comment-10402 [...] angels get common stock or preferred stock?  What’s the difference between common stock and preferred stock?  Why does it matter?  This deal term has implications for future funding rounds and your [...] [...] angels get common stock or preferred stock?  What’s the difference between common stock and preferred stock?  Why does it matter?  This deal term has implications for future funding rounds and your [...]

]]> By: Convertible Note Term Sheet | Startup Lawyer http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-1972 Convertible Note Term Sheet | Startup Lawyer Tue, 24 Aug 2010 14:30:47 +0000 http://www.thestartuplawyer.com/?p=182#comment-1972 [...] like the preferred equity financing process, the convertible debt financing process can start with a term sheet, rather than [...] [...] like the preferred equity financing process, the convertible debt financing process can start with a term sheet, rather than [...]

]]> By: Raj Kato http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-141 Raj Kato Wed, 18 Nov 2009 17:39:54 +0000 http://www.thestartuplawyer.com/?p=182#comment-141 Hi Ryan, I'm in the process of seeking funding for my startup internet company name YourKandy.com. We've created an Interactive Social Network Magazine that targets the entertainment Industry, such as: Models, Actors, Directors, Writers, etc... I have a 40 page business plan with a 5 year financial projection forecast ready to hit the laps of investors. But as you know it's not that easy. All these financial terms and equations are new too me and I just want to make the least mistakes as possible on something i've worked so hard on. I'm more then confident I will succeed, if i've gotten this far, but not by myself, always through the help of amazing people like you who help others in the start of a fascinating journey. Any advice you can give for my situation, especially where to look for added investors, not only in the money they can provide but most importantly the experience they add to a startup company? Hi Ryan,

I'm in the process of seeking funding for my startup internet company name YourKandy.com. We've created an Interactive Social Network Magazine that targets the entertainment Industry, such as: Models, Actors, Directors, Writers, etc…
I have a 40 page business plan with a 5 year financial projection forecast ready to hit the laps of investors. But as you know it's not that easy. All these financial terms and equations are new too me and I just want to make the least mistakes as possible on something i've worked so hard on.
I'm more then confident I will succeed, if i've gotten this far, but not by myself, always through the help of amazing people like you who help others in the start of a fascinating journey.
Any advice you can give for my situation, especially where to look for added investors, not only in the money they can provide but most importantly the experience they add to a startup company?

]]> By: Raj Kato http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-2439 Raj Kato Wed, 18 Nov 2009 17:39:00 +0000 http://www.thestartuplawyer.com/?p=182#comment-2439 Hi Ryan, I'm in the process of seeking funding for my startup internet company name YourKandy.com. We've created an Interactive Social Network Magazine that targets the entertainment Industry, such as: Models, Actors, Directors, Writers, etc... I have a 40 page business plan with a 5 year financial projection forecast ready to hit the laps of investors. But as you know it's not that easy. All these financial terms and equations are new too me and I just want to make the least mistakes as possible on something i've worked so hard on. I'm more then confident I will succeed, if i've gotten this far, but not by myself, always through the help of amazing people like you who help others in the start of a fascinating journey. Any advice you can give for my situation, especially where to look for added investors, not only in the money they can provide but most importantly the experience they add to a startup company? Hi Ryan,

I'm in the process of seeking funding for my startup internet company name YourKandy.com. We've created an Interactive Social Network Magazine that targets the entertainment Industry, such as: Models, Actors, Directors, Writers, etc…
I have a 40 page business plan with a 5 year financial projection forecast ready to hit the laps of investors. But as you know it's not that easy. All these financial terms and equations are new too me and I just want to make the least mistakes as possible on something i've worked so hard on.
I'm more then confident I will succeed, if i've gotten this far, but not by myself, always through the help of amazing people like you who help others in the start of a fascinating journey.
Any advice you can give for my situation, especially where to look for added investors, not only in the money they can provide but most importantly the experience they add to a startup company?

]]> By: Ryan Roberts http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-137 Ryan Roberts Tue, 07 Apr 2009 16:01:45 +0000 http://www.thestartuplawyer.com/?p=182#comment-137 Benjamin, I wouldn't start out with any stock as preferred. You can amend the charter later to add a 2nd class of shares. Benjamin,

I wouldn't start out with any stock as preferred. You can amend the charter later to add a 2nd class of shares.

]]> By: Ryan Roberts http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-2438 Ryan Roberts Tue, 07 Apr 2009 16:01:00 +0000 http://www.thestartuplawyer.com/?p=182#comment-2438 Benjamin, I wouldn't start out with any stock as preferred. You can amend the charter later to add a 2nd class of shares. Benjamin,

I wouldn't start out with any stock as preferred. You can amend the charter later to add a 2nd class of shares.

]]> By: Benjamin http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-136 Benjamin Wed, 01 Apr 2009 19:42:23 +0000 http://www.thestartuplawyer.com/?p=182#comment-136 Ryan, I stumbled upon your website today on accident and its the best find I've had in awhile. I'm taking you advice on scraping my LLC and going with a C-Corp, but am not sure how much preferred stock to start with. If I am anticipating (in a perfect world) 2 rounds of funding and giving up at least 50% of the company, then should I start with at least 50% of the stock as preferred? Keep up the good work, its has helped me a lot in just a day. Ryan, I stumbled upon your website today on accident and its the best find I've had in awhile. I'm taking you advice on scraping my LLC and going with a C-Corp, but am not sure how much preferred stock to start with. If I am anticipating (in a perfect world) 2 rounds of funding and giving up at least 50% of the company, then should I start with at least 50% of the stock as preferred?
Keep up the good work, its has helped me a lot in just a day.

]]> By: Benjamin http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-2437 Benjamin Wed, 01 Apr 2009 19:42:00 +0000 http://www.thestartuplawyer.com/?p=182#comment-2437 Ryan, I stumbled upon your website today on accident and its the best find I've had in awhile. I'm taking you advice on scraping my LLC and going with a C-Corp, but am not sure how much preferred stock to start with. If I am anticipating (in a perfect world) 2 rounds of funding and giving up at least 50% of the company, then should I start with at least 50% of the stock as preferred? Keep up the good work, its has helped me a lot in just a day. Ryan, I stumbled upon your website today on accident and its the best find I've had in awhile. I'm taking you advice on scraping my LLC and going with a C-Corp, but am not sure how much preferred stock to start with. If I am anticipating (in a perfect world) 2 rounds of funding and giving up at least 50% of the company, then should I start with at least 50% of the stock as preferred?
Keep up the good work, its has helped me a lot in just a day.

]]> By: What is a Pre-money and Post-money valuation? | The Startup Lawyer http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-140 What is a Pre-money and Post-money valuation? | The Startup Lawyer Thu, 31 Jul 2008 18:48:41 +0000 http://www.thestartuplawyer.com/?p=182#comment-140 [...] valuation. 3,000,000/(5,000,000+3,000,000)= 37.5%. Google owns 37.5% of your startup company (in preferred stock) while all the other shareholders of your startup company own the remaining 62.5%. Share this [...] [...] valuation. 3,000,000/(5,000,000+3,000,000)= 37.5%. Google owns 37.5% of your startup company (in preferred stock) while all the other shareholders of your startup company own the remaining 62.5%. Share this [...]

]]> By: 5 Signs Your Startup Jumped The Shark | The Startup Lawyer http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-138 5 Signs Your Startup Jumped The Shark | The Startup Lawyer Sun, 20 Jul 2008 20:39:51 +0000 http://www.thestartuplawyer.com/?p=182#comment-138 [...] - You offer to pay your pizza delivery guy by issuing him common stock, and he counters with preferred stock and a 10x liquidation preference. Share this [...] [...] – You offer to pay your pizza delivery guy by issuing him common stock, and he counters with preferred stock and a 10x liquidation preference. Share this [...]

]]> By: Why Your Startup Company Will Need to be a C Corporation to Raise Venture Capital | The Startup Lawyer http://startuplawyer.com/preferred-stock/what-is-preferred-stock#comment-139 Why Your Startup Company Will Need to be a C Corporation to Raise Venture Capital | The Startup Lawyer Thu, 17 Jul 2008 15:14:08 +0000 http://www.thestartuplawyer.com/?p=182#comment-139 [...] stock requirement is fatal to a venture capital investment since venture capital firms will demand preferred stock in return for their investment. Also, most venture capital firms are organized as limited [...] [...] stock requirement is fatal to a venture capital investment since venture capital firms will demand preferred stock in return for their investment. Also, most venture capital firms are organized as limited [...]

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