How Funding Rounds Differ: Seed, Series A, Series B, and C...(blog.eladgil.com)
blog.eladgil.com
How Funding Rounds Differ: Seed, Series A, Series B, and C...
http://blog.eladgil.com/2011/03/how-funding-rounds-differ-seed-series.html
2 comments
A good read for entrepreneurs learning their way around Sandhill Road's alphabet soup.
Nothing about Series F?
Founders Institute has special Series F in their incorporation docs in order to protect founders.
Series F is often actually a series seed or A stock instrument. I write more about it here:
http://blog.eladgil.com/2010/03/vcs-starter-stock-why-how-to...
http://blog.eladgil.com/2010/03/vcs-starter-stock-why-how-to...
From my understanding, you're describing (edit: something like) Series FF (i.e. what Founders Fund issues) there-- the founder's institute stuff has certain additional voting rights attached in additional to liquidity provisions.
From Scott Walker's blog: http://walkercorporatelaw.com/startup-issues/ask-the-attorne... http://venturebeat.com/2010/03/01/ask-the-attorney-what-the-...
From Scott Walker's blog: http://walkercorporatelaw.com/startup-issues/ask-the-attorne... http://venturebeat.com/2010/03/01/ask-the-attorney-what-the-...
Yes agreed. I focus on FF/starter stock versus series F. I have not seen an early stage startup successfully negotiate series F stock given e.g. supervoting rights.
Later stage companies (see e.g. FB and Google) with strong founders in place can often get a dual class structure with super voting rights later in their life as they prepare to go public and their existing investors/board can get liquidity.
Later stage companies (see e.g. FB and Google) with strong founders in place can often get a dual class structure with super voting rights later in their life as they prepare to go public and their existing investors/board can get liquidity.