As the summer quickly approaches, it’s the time of year that many employers consider hiring an intern for the summer. Start-up companies may view this as an opportunity to hire students as “cheap” or “free” labor. Unfortunately, there are a lot of misconceptions about unpaid interns. The…
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The Double Edged Sword: Why Founders and Investors Should Avoid Fixed-Multiple Change of Control Premiums in Convertible Note Financings
In a convertible note financing (or an increasingly popular SAFE financing), the change of control premium—the benefit given to a lender if the company has an exit before the notes convert—is an easily overlooked term. This is because it is rarely applicable, especially when the financing is a seed-type investment.