Comments on: How to Issue Weak Preferred Stock to Friends & Family http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family 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: Joshua Dorkin http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family#comment-9897 Joshua Dorkin Tue, 15 Feb 2011 20:00:25 +0000 http://www.thestartuplawyer.com/?p=188#comment-9897 Great feedback, Ryan. In exploring a seed round, I'm very interested in learning how best to maintain the ability to raise future venture funds while still managing to raise enough today to get to there. Thanks for the advice! Great feedback, Ryan. In exploring a seed round, I’m very interested in learning how best to maintain the ability to raise future venture funds while still managing to raise enough today to get to there. Thanks for the advice!

]]> By: Terry http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family#comment-135 Terry Sun, 29 Nov 2009 11:53:47 +0000 http://www.thestartuplawyer.com/?p=188#comment-135 I was issued "Preferred Stock" in a corporation and the company now wants to do a distribution, and they are sayng that the distribution may be in the form of a "Preferred Stock" re-purchase. Do I have to allow that t happen, I prefer to keep my "Preferred Stock" I was issued "Preferred Stock" in a corporation and the company now wants to do a distribution, and they are sayng that the distribution may be in the form of a "Preferred Stock" re-purchase.
Do I have to allow that t happen, I prefer to keep my "Preferred Stock"

]]> By: Terry http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family#comment-2458 Terry Sun, 29 Nov 2009 11:53:00 +0000 http://www.thestartuplawyer.com/?p=188#comment-2458 I was issued "Preferred Stock" in a corporation and the company now wants to do a distribution, and they are sayng that the distribution may be in the form of a "Preferred Stock" re-purchase. Do I have to allow that t happen, I prefer to keep my "Preferred Stock" I was issued "Preferred Stock" in a corporation and the company now wants to do a distribution, and they are sayng that the distribution may be in the form of a "Preferred Stock" re-purchase.
Do I have to allow that t happen, I prefer to keep my "Preferred Stock"

]]> By: Ryan Roberts http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family#comment-133 Ryan Roberts Thu, 16 Apr 2009 10:52:52 +0000 http://www.thestartuplawyer.com/?p=188#comment-133 John, Not implying you are doing this, but I cringe when people evaluate legal costs on a "per page basis." Yes, there is a lot of paperwork involved in a financing but there also is a lot of deal structuring, corporate cleanup, and securities law compliance issues. Also, cost will depend on the amount of negotiations between company and investor(s). Other factors include if you are using a large firm or a small firm. I can't say if that's a fair price or not, but perhaps the lawyer is just trying to manage your expectations. John,

Not implying you are doing this, but I cringe when people evaluate legal costs on a "per page basis." Yes, there is a lot of paperwork involved in a financing but there also is a lot of deal structuring, corporate cleanup, and securities law compliance issues. Also, cost will depend on the amount of negotiations between company and investor(s). Other factors include if you are using a large firm or a small firm.

I can't say if that's a fair price or not, but perhaps the lawyer is just trying to manage your expectations.

]]> By: Ryan Roberts http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family#comment-2457 Ryan Roberts Thu, 16 Apr 2009 10:52:00 +0000 http://www.thestartuplawyer.com/?p=188#comment-2457 John, Not implying you are doing this, but I cringe when people evaluate legal costs on a "per page basis." Yes, there is a lot of paperwork involved in a financing but there also is a lot of deal structuring, corporate cleanup, and securities law compliance issues. Also, cost will depend on the amount of negotiations between company and investor(s). Other factors include if you are using a large firm or a small firm. I can't say if that's a fair price or not, but perhaps the lawyer is just trying to manage your expectations. John,

Not implying you are doing this, but I cringe when people evaluate legal costs on a "per page basis." Yes, there is a lot of paperwork involved in a financing but there also is a lot of deal structuring, corporate cleanup, and securities law compliance issues. Also, cost will depend on the amount of negotiations between company and investor(s). Other factors include if you are using a large firm or a small firm.

I can't say if that's a fair price or not, but perhaps the lawyer is just trying to manage your expectations.

]]> By: John Paltridge http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family#comment-132 John Paltridge Wed, 15 Apr 2009 17:43:59 +0000 http://www.thestartuplawyer.com/?p=188#comment-132 Ryan, your website is simply amazing. Can I ask you, is doing this type of preferred stock financing very expensive with the lawyers? A lawyer I know told me it might cost $15,000 - $20,000 to do a simple preferred financing round of around $200,000. This is because there is a lot of paperwork involved. Is that a fair price? Ryan, your website is simply amazing. Can I ask you, is doing this type of preferred stock financing very expensive with the lawyers? A lawyer I know told me it might cost $15,000 – $20,000 to do a simple preferred financing round of around $200,000. This is because there is a lot of paperwork involved. Is that a fair price?

]]> By: John Paltridge http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family#comment-2456 John Paltridge Wed, 15 Apr 2009 17:43:00 +0000 http://www.thestartuplawyer.com/?p=188#comment-2456 Ryan, your website is simply amazing. Can I ask you, is doing this type of preferred stock financing very expensive with the lawyers? A lawyer I know told me it might cost $15,000 - $20,000 to do a simple preferred financing round of around $200,000. This is because there is a lot of paperwork involved. Is that a fair price? Ryan, your website is simply amazing. Can I ask you, is doing this type of preferred stock financing very expensive with the lawyers? A lawyer I know told me it might cost $15,000 – $20,000 to do a simple preferred financing round of around $200,000. This is because there is a lot of paperwork involved. Is that a fair price?

]]> By: What is Preferred Stock? | The Startup Lawyer http://startuplawyer.com/preferred-stock/how-to-issue-weak-preferred-stock-to-friends-family#comment-134 What is Preferred Stock? | The Startup Lawyer Mon, 14 Jul 2008 15:29:48 +0000 http://www.thestartuplawyer.com/?p=188#comment-134 [...] startup undergoes an larger financing, such as one with a venture capital fund. Angel investors and the friends & family round may sometimes receive preferred stock. Keep in mind there is no bright-line rule when it comes to [...] [...] startup undergoes an larger financing, such as one with a venture capital fund. Angel investors and the friends & family round may sometimes receive preferred stock. Keep in mind there is no bright-line rule when it comes to [...]

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