 Business Funding
- Overview of Funding Stages
- Funding Deal Process
- Series A Funding
- Standard Equity Financing Documents
- Board & Stockholder Approval
- Due Diligence
- Stock Purchase Agreement Structure
- Company Legal Opinion
- Rolling Closing Date
- Funding Transaction Costs
- Counsel & Expenses
Capital Structure
- Business Capital Structure
- Authorized Shares
- Common and Preferred Shares
- Preferred Convertible Shares
- Preferred Liquidation Preference
- Participating Preferred Shares
- Participating Convertible Preferred
- Issued, Outstanding, and Fully Diluted
- What is Capitalization & How do you Calculate It?
- Options Pools & Capitalization
- Overview of Equity Distribution to Founders
- Co-Founder Equity Split
- Issues in Contributing IP for Equity
- Founders Stock
- Class F Stock
- Class FF Stock
- Stock Vesting Schedule
- Vesting Schedule & Follow-On Financing
Equity Funding Process
- Overview of Business Funding
- Funding with Company Revenue
- Personal Contributions of Founders
- Friends, Family, and Fools
- Business (Commercial) Loans
- Promissory Notes
- Co-Owners
- Funding from Equity Investments
- Angel Investment & Venture Capital
- Overview of Angel & VC Investment
- Angel Investment
- Venture Capital
- Crowdfunding
- Debt vs Equity (A Balance)
- Other Financial Methods
- Business Plan for Loans
- Business Plan for Equity
Term Sheet Provisions
- Term Sheet Provisions
- Dividend Rights
- Liquidation Preference
- Participation Rights & Caps
- Liquidation Preference & Follow-on Financing
- Redemption Rights
- Conversion Rights
- Anti-dilution Protection
- Full Ratchet Anti-dilution Protection
- Weighted-Average Anti-dilution Protection
- Broad-Based vs Narrow-Based Calculations
- Carveouts to Anti-Dilution Protections
- Preemptive Rights
- Voting Rights
- Protective Provisions
- Drag-Along Rights
- Registration Rights
- Board Observer Rights & Seats
- Management of Information Rights
- Special Employee Provisions
- Counsel & Expenses
Other Concepts
- Overview of Private Equity
- Venture Capital Exemption from Investment Advisors Act
- Escrowed Securities Definition
- Earnout (Sale of Business) Definition
- Deficiency Letter (Securities Law)
- Down Round (Finance) Definition
- Drive-by Deal (Venture Capital) Definition
- Deal Flow (Finance) Definition
- Deal Lead (Finance) Definition
- De Facto Merger Definition
- Electronic Data Gathering Analysis and Retrieval (EDGAR) Definition
- Employee Buyout (EBO) Definition
- Herfindahl Hirschman Index (HHI) Definition
- Registration (Securities) Definition
- Reprice (Stock Options) Definition
- Rights Offering (Stock Issuance) Definition
- Redeemable Shares of Stock Definition
- Registered Investment Advisor Definition
- Regulation FD Definition
- Regulated Investment Company Definition
- Right of First Offer Definition
- Reverse Takeover (RTO) Definition
- Rule 144A Securities Regulation Definition
- National Association of Securities Dealers (NASD) Definition
- No Shop Clause Definition
- Negative Control Provisions Definition
- Carve Out (Finance) Definition
- Celler-Kefauver Act Definition
- Central Registration Depository Definition
- Form 10-K Definition
- SEC Form S-1 Definition
- SEC Form S-4 Definition
- State Securities Laws Blue Sky Laws
- FTC Act Antitrust Law
- Business Capital Structure
- Best Efforts (IPO Underwriting) Explained
- Callable Preferred Stock Definition
- Capitalization Table Definition
- Carve Out Definition
- Collusion Explained
- Conversion (Financial Asset) Definition
- Clawback Definition
- International Securities Identification Number (ISIN) Definition
- Insider Trading Definition
- Lead Investor Venture Capital Definition
- Liquidity Event Definition
- Liquidation Definition
- Letter of Intent Definition
- Leveraged Buyout Definition
- Option Pool Definition
- Piggyback Registration Definition
- Post-Money Valuation Definition
- Pre-Money and Post-Money Cap Table Definition
- Private Placement Definition
- Privitization Definition
- Price Discrimination Definition
- Oversubscription Definition
- Over the Counter Trade Definition
- Lock Up Period Definition
- Prospectus Definition
- Pay to Play Definition
- Private Company Definition
- Passive Foreign Investment Company Definition
- Private Placement Memorandum (PPM) or Offering Memorandum Definition
- Right of First Refusal Definition
- Reverse Vesting Definition
- Redemption Period Definition
- Seed Capital Definition
- Regulation S-B Definition
- Regulation S-K Definition
- Regulation S-X Definition
- Reporting Company Definition
- Subscription Agreement Definition
- Staying Private Definition
- Recoupment Definition
- Realized Pay Definition
- Regulation S Definition
- Private Placement Financing Definition
- Abbrochment Definition
- Series or Rounds of Financing (Startups) Definition
- Standard Industrial Classification (SIC) Code Definition
- Summary Compensation Table Definition
- Business Development Company Definition
- Private Investment Company Definition
- General Solicitation Definition
- Arms Length Transaction Definition
- Conversion Ratio Definition
- Tying Arrangement Definition
- Syndicate Definition
- Treasury Stock Definition
- Unit Offering (Securities) Definition
- Uniform Securities Act Definition
- Takedown (Stock Issuance) Definition
- Up Round Definition
- Targeted Registered Offering (Greenmail) Definition
- Tag Along Rights Definition
- Venture Debt Definition
- Vesting Schedule Definition
- World Business Angels Association Definition
- Backdoor Listing Definition
- Vesting Definition
- Crowdfunding Definition
- Hart Scott Rodino Act Definition
- Merger Definition
- Option (Stock) Definition
- Participating Preferred Stock Definition
- Tender Offer Definition
- Term Sheet Definition
- Private Equity Definition
- Venture Capital Definition
- All Holders Rule Definition
- Business Development Company Definition
- Blockholder (shareholder) Definition
- Blind Pool Definition
- Blank Check Preferred Stock Definition
- Bullet Dodging Definition
- Acceleration (Securities Act) Definition
- Basket Purchase Definition
- Offering Circular Definition
- If-Converted Method (Securities) Definition
- Warrant Coverage Definition
- Buyout Definition
- Buyback Definition
- Buy In Management Buyout (BIMBO) Definition
- Types of Takeover (Corporate) Definition
- Undetachable Stock Warrant Definition
- Underwriter Syndicate Definition
- Backstop (Securities Issuance) Definition
- Backstop Purchaser Definition
- Fair Funds for Investors Definition
- Laddering Definition
- Management and Employee Buyout Definition
- Washout Round Definition
- Undersubscribed (IPO) Definition
- Certified Financial Divorce Practitioner Definition
- Price Fixing Definition
- Preliminary Prospectus Definition
- Committed Capital Definition
- Venture Capital Backed IPO Definition
- Vertical Merger Definition
- Master Fund Definition
- White Knight Definition
- White Squire Definition
- Common Stock Equivalent Definition
- Restricted Stock Definition
- Restricted Stock Unit Definition
- Conversion Price Definition
- Shelf Offering Definition
- Shelf Registration Definition
- Short Sale Rule Definition
- Short-Swing Profit Rule Definition
- Equity Compensation Definition
- Subscription Right Definition
- Straw Buyer Definition
- Turnaround (Company) Definition
- Two and Twenty (Compensation) Definition
- Subscribed (Securities) Definition
- Roadshow (IPO) Definition
- Small Company Offering Registration Definition
- Sophisticated Investor (Securities) Definition
- Direct Public Offering Definition
- Disclosure Statement Definition
- Disgorgement Definition
- Distribution Waterfall Definition
- Share Repurchase Agreement Definition
- Share Purchase Rights Definition
- Reverse Triangular Merger Definition
- Schedule K-1 Definition
- CINS Number Definition
- Cash Out Merger Definition
- Schedule 13D (SEC) Definition
- Forward Triangular Merger Definition
- Safe Harbor (Generally) Definition
- Secondary Offering Definition
- Accelerated Share Repurchase Definition
- Accelerated Vesting Definition
- Friendly Takeover Definition
- Full Ratchet Definition
- Tuck-In Acquisition Definition
- Accumulating Shares Definition
- Adjustable Rate Preferred Stock Definition
- Accelerated Resolution Program Definition
- Academy of Financial Divorce Practitioners Definition
- Strategic Buyer Definition
- Classified Shares Definition
- Exempt Transaction Definition
- Non-Accredited Investor Definition
- Notice Filing Definition
- Sweat Equity Definition
- Friends and Family Shares Definition
- Escrow Definition
- Fully Subscribed Definition
- Going Private Definition
- Blank Check Company Definition
- Phantom Stock Plan Definition
- Material Insider Information Definition
- Insider Information Definition
- Monopolistic Competition Definition
- Cliff Vesting Definition
- Mergers and Acquisitions Definition
- Lock-Up Agreement Definition
- Intrastate Offering Definition
- Investment Advisors Act of 1940
- Corporate Raider Definition
- Standstill Agreement Definition
- Misappropriation Theory Definition
- Bailout (Company) Definition
- Spinoff Definition
- Spin Out Definition
- Liquidation Preference Definition
- Stock Appreciation Right Definition
- Dilutive Acquisition Definition
- Seasoned Issue Definition
- Participating Convertible Preferred Stock Definition
- Institutional Buyout Definition
- Bid Rigging Definition
- High Net Worth Individual Definition
- Indication of Interest Definition
- Special Purpose Vehicle / Special Purpose Entity Definition
- Secondary Buyout Definition
- Regulation SHO Definition
- Franchise Disclosure Document Definition
- IPO Lockup Definition
- Convertible Adjustable Preferred Stock Definition
- Control Premium Definition
- Corporate Kleptocracy Definition
- Carried Interest Definition
- Break Up Fee Definition
- Minority IPO Definition
- Gray Knight (Hostile Takeover) Definition
- Bought Deal Definition
- Closed-Market Transaction Definition
- Bailout Takeover Definition
- All Cash All Stock Offer Definition
- People Poison Pill Definition
- Busted Takeover Definition
- Pathfinder Prospectus Definition
- Preferred Equity Redemption Stock Definition
- Letter of Comment Definition
- Direct Stock Purchase Plan Definition
- Bust-Up Takeover Definition
- Form S-3 Filing Definition
- Form S-8 Filing Definition
- Dirks Test Definition
- Average Cost Pricing Rule Definition
- Pump and Dump Definition
- Best Price Rule 14D-10 Definition