Venture Capital

What is a Liquidation Preference?

The liquidation preference is the amount that must be paid to the preferred stock holders before distributions may be made to common stock holders. The liquidation preference is payable on either a liquidation of the company, asset sale, merger, consolidation or any other reorganization resulting in the change of control of the startup. It is … Continue reading

WSGR Launches Term Sheet Generator

I just found out from that Wilson Sonsini has launched a “Term Sheet Generator.” Here is WSGR’s description of the free tool: This tool will generate a venture financing term sheet based on your responses to an online questionnaire. It also has an informational component, with basic tutorials and annotations on financing terms. This … Continue reading

2009 Venture-Backed IPO!

It is bound to happen eventually, right? A venture-backed company will break the drought and find an exit via IPO. Well, OpenTable filed with the SEC and is looking to raise up to $40MM in an initial public offering. If successful, OpenTable will be the first venture-backed IPO in several months. There were only 6 … Continue reading