Voting Rights of Vesting Shares

One of the most asked questions I receive when setting up new startup companies is “Do my vesting shares have any voting rights?”  Or in other words,  does a stockholder only get to vote based on their amount of vested shares?  Since most of the times a founder subjects their entire

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U.S. VC Process for Indian Startups

As an India-based startup, closing on U.S. venture capital is similar to doing so if your company was completely US-based, with a few notable differences. In the past several years, I’ve represented several India-based startups through venture capital financings. To name just a few, clients have included Freshworks (formerly FreshDesk),

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Accelerator Investments Should Be Convertible Equity

I previously wrote that accelerator documents should be easy.  At the time, I thought accelerator documents should be easy primarily because of the potential adverse selection problem for the accelerator.  In other words, the more difficult the terms or onboarding process (including the investment documents), the more likely the best

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Tech Wildcatters Pitch Day May 2016

Tech Wildcatters, the original Dallas accelerator, is hosting their first pitch day of 2016 on May 26th at the House of Blues in Dallas. Here’s the streamlined agenda: 12:45pm — Accredited Investor Preview 1:30pm — Doors Open to General Public 2:15pm — Program/Pitches 3:30pm — Happy Hour It’s free to attend,

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Convertible Note Maturity Date Terms

Convertible notes are a very common startup financing method. Convertible notes contain a maturity date provision at which point the notes are to be repaid with interest.  This is usually set at 18-24 months after the first convertible note investment. However, repayment of the notes upon the maturity date is usually

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Dual Class Common Stock Structure for Founders

A startup founder’s desire to hold equity better than plain-vanilla common stock isn’t new.  Several years ago, Series FF stock for founders was all the rage when it came to founder liquidity at subsequent financing rounds. We implemented Series FF for a handful of clients back then but we haven’t done so recently. In the

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