RUSSIAN ROULETTE CLAUSE
Companies bring together people with a similar vision and views on business, but it is not always easy for owners...
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MAKING A SECTION 83(B) ELECTION UNDER U.S. LAW
In our previous publications, we have drawn attention to the idea of vesting of options and reverse vesting of stock,...
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REVERSE VESTING: A MECHANISM THAT HELPS RETAINING FOUNDERS
As we have already discussed in our previous publications, the process of raising investments to a company may require several...
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Double Trigger on Option [Vesting] Acceleration – Meaning and Importance
Share or option vesting is a retention mechanism, intended to secure the engagement of founders, employees, and advisors, over time...
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Anti-Dilution – The Good, the Bad and the Ugly
Shares that are sold by a company, usually in the case of issuance, result in existing investor-holding dilution, unless they...
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Liquidation Preference: Meaning and difference between “participating” and “non-participating” liquidation preference
Investors purchasing preferred stock, usually demand to have a liquidity preference mechanism, whereby their purchased stock is being cashed out...
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Right of Co-Sale
Right of First Refusal and Co-Sale Agreement is one of the standard transaction agreements executed in the framework of a...
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Purpose of Valuation Cap in SAFE
SAFE is an agreement used by startups mainly to raise funds during their seed financing rounds. By using a SAFE,...
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