LIQUIDATION PREFERENCES: WHAT INVESTORS CAN EXPECT IF A COMPANY IS SOLD

New businesses, and especially startups, can be risky for financial investments. Of course, investments always involve risks, but the possibility of high profits, particularly in the case of an IPO or M&A transactions, still attract investors. There are many tools, however, to mitigate the risks, and if the transaction papers are carefully drafted with respect … Read more LIQUIDATION PREFERENCES: WHAT INVESTORS CAN EXPECT IF A COMPANY IS SOLD

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

INVESTMENT TIPS

Share or option vesting is a retention mechanism, intended to secure the engagement of founders, employees, and advisors, over time or when hitting certain milestones. Vesting allows equity grantees to earn their share over a period of time, or when achieving certain milestones.  On the other hand, vesting acceleration allows founders, employees and advisors to … Read more Double Trigger on Option [Vesting] Acceleration – Meaning and Importance

Management Rights Letter: An Overview

venture capital

Various documents are involved in the process of venture capital investment, one of them is a management rights letter also known as an MRL, which is sometimes requested by venture investors. An MRL ensures that the investors have access to the essential information regarding the working of a company, and grants various other necessary rights … Read more Management Rights Letter: An Overview