ENGR 112 Financing New Ventures + Term Sheets
Terms in this set (15)
Price and Valuation Valuation
The priority that a preferred share has in the pecking order of receiving proceeds in the event of a liquidation or a deemed liquidation event.
Anti‐Dilution: Full Ratchet vs. Weighted Average
full ratchet: this type of adjustment "ratchets" down the conversion price to the lowest price at which stock is issued after the issuance of the investor's preferred stock - regardless of the number of shares presented.
weighted average: takes into account both the lower price and the actual number of shares issued in the down round.
The rights of a portion of a class of shareholders to force the remainder of that class of shareholders to go along with any decision made by a majority (or sometimes a supermajority) of the class.
Information and Registration Rights
Rights of First Refusal and Co‐Sale
Pre‐Closing Covenants (Diligence Issues)
Due Diligence and Legal Expenses
Tranches based on Milestones
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OTHER SETS BY THIS CREATOR
engr 111 week 1
ENGR 112 Forming and Organizing the Startup
ENGR 112 Raising Capital
engr 112 IP (intellectual property)
THIS SET IS OFTEN IN FOLDERS WITH...
ENGR 112 Customer Development/ Industry
ENGR 112 Revenue Streams
ENGR 112 Business Plan/ Pitches
UCLA ENGR 112 Winter 2017