Blog Articles

As a majority shareholder in a company, it’s crucial to have the power to take control of the business and make important decisions that will benefit the company’s growth and success. However, it’s not uncommon to run into situations where minority shareholders may hold onto their shares, creating significant roadblocks to the majority’s vision for […]

Summary: As an investor in startups, it’s important to consider not only the amount of money you’re putting in but also the level of involvement you have in the company’s decision-making process. One way to do this is by securing a board seat, but this comes with its own set of responsibilities and potential drawbacks. […]

When a company decides to issue new stock offerings, investors may have the option to exercise either participation rights or right of first refusal. Both have their advantages and disadvantages, and it largely depends on the investor’s investment goals and risk tolerance. In this article, we’ll break down the key differences between participation rights and […]

As a seasoned expert in business transactions, I have seen firsthand the importance of including clauses such as Right of First Refusal and Co-Sale Rights in agreements. These clauses can have a significant impact on the control and value of a company, and understanding how they work is crucial for protecting your interests. The Right […]

[[Warrants]] are an often-overlooked financial instrument that can offer investors a unique opportunity to potentially profit from a company’s growth without having to invest a large sum of money upfront. A warrant is essentially a derivative that gives the holder the right to buy additional shares of stock at a fixed price, within a designated […]

Summary: Startups often use anti-dilution clauses to protect their investors in case of future equity financings. However, these clauses can be complex and have different implications for both the company and investors. Understanding the different types of anti-dilution clauses and their potential impact is crucial for startup founders and investors alike. As startups seek funding […]

When you’re raising money for your startup, there are a lot of terms and concepts that you need to familiarize yourself with. One of the most important of these is “liquidation preference.” Put simply, this refers to the order in which investors get paid in the event of a liquidation event. There are several different […]

When it comes to funding a startup, one of the key factors investors consider is the company’s pre-money valuation. Pre-money valuation is the value of a company prior to any external funding, including investments from venture capitalists or angel investors. Understanding this concept is crucial for startup founders who are looking to raise funds for […]

As a startup founder or investor, understanding the different types of shares is crucial for determining ownership, voting rights, and potential dividends. Here are the most common types of shares: 1. Common shares: These are the most basic type of shares, and they represent ownership in the company. Common shareholders have the right to vote […]