Founders, Entrepreneurs and Startups

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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What are Protective Provisions (or veto rights), why do investors insist on having them and how founders should negotiate them?

What are Protective Provisions (or veto rights), why do investors insist on having them and how founders should negotiate them?

Financing, Options and Taxes Founders, Entrepreneurs and Startups
Protective provisions or veto rights are usually granted to the preferred stockholders (stockholders’ purchasing preferred stock) and they allow them...
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Benefits of SAFE for Startup Founders

Benefits of SAFE for Startup Founders

Financing, Options and Taxes Founders, Entrepreneurs and Startups
Simple Agreement for Future Equity, also known as SAFEs, is an agreement mainly (but not only) used by founders to...
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Right of First Refusal

Right of First Refusal

Financing, Options and Taxes Founders, Entrepreneurs and Startups
Different transaction agreements are executed between the parties for the purpose of purchase and sale of startups’ stock. One such...
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Main Difference between Pre-Money and Post-Money SAFE

Main Difference between Pre-Money and Post-Money SAFE

Financing, Options and Taxes Founders, Entrepreneurs and Startups
Simple Agreement for Future Equity (SAFE) is a legal agreement between startup and investor. Startups use SAFEs to raise capital...
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Pro-Rata Participation Rights – What does it mean and what should you pay attention to?

Pro-Rata Participation Rights – What does it mean and what should you pay attention to?

Founders, Entrepreneurs and Startups Publications
Meaning of Pro-Rata Participation Rights Pro-rata participation rights, also known as pro-rata investing rights, or preemptive rights, grant existing shareholders...
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