Financing, Options and Taxes

REVERSE VESTING: A MECHANISM THAT HELPS RETAINING FOUNDERS

REVERSE VESTING: A MECHANISM THAT HELPS RETAINING FOUNDERS

Financing, Options and Taxes Founders, Entrepreneurs and Startups
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

Double Trigger on Option [Vesting] Acceleration – Meaning and Importance

Financing, Options and Taxes Founders, Entrepreneurs and Startups
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

Anti-Dilution – The Good, the Bad and the Ugly

Financing, Options and Taxes Publications
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

Liquidation Preference: Meaning and difference between “participating” and “non-participating” liquidation preference

Financing, Options and Taxes Founders, Entrepreneurs and Startups
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 Co-Sale

Financing, Options and Taxes Founders, Entrepreneurs and Startups
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

Purpose of Valuation Cap in SAFE

Financing, Options and Taxes Founders, Entrepreneurs and Startups
SAFE is an agreement used by startups mainly to raise funds during their seed financing rounds. By using a SAFE,...
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No Shop Provision in Term Sheet and its Implications

No Shop Provision in Term Sheet and its Implications

Financing, Options and Taxes Founders, Entrepreneurs and Startups
A term sheet outlines the rights and obligations of parties involved in private equity transactions. Generally speaking, most term sheets...
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Why Breakup Fee clauses needed in M&A transactions?

Why Breakup Fee clauses needed in M&A transactions?

Financing, Options and Taxes Founders, Entrepreneurs and Startups
Breakup fee clause, also known as “termination fee” clause, is often included in the Letter of Intent, a Memorandum of...
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