Dilution is a term that is frequently discussed in the context of preferred stock financings. However, it is important to understand that there is a difference between dilution in the general sense and the type of dilution with respect to which preferred stockholders receive protection.
Running a successful and profitable company can be an incredibly trying experience that takes dedication, hard work, and sacrifice. If you are thinking of pursuing a venture you are passionate about, it helps to know what challenges you may encounter.
“Pre-money” or “pre-money valuation” is a term that entrepreneurs will hear and use a lot in the context of securing equity financing, so I thought it would be a good idea to make sure entrepreneurs have a clear understanding of it.
In order to grow your business, surround yourself with like minded people and take advantage of every opportunity to learn more about entrepreneurship.
On Thursday, April 4th, Perkins Coie’s Palo Alto office hosted the startupPerColator Series event, “Seed Investments: How to Be Attractive to Early Stage Investors and the "Right" Seed Investment Structure for You.”
To meet growing demand from entrepreneurs and investors to empower entities to sustain a triple bottom line, state legislatures across the nation have been creating new corporate forms that give businesses legal protection to address social and environmental problems. Delaware, however, declined to consider whether to adopt such a corporate structure…until now.
I recently participated in a panel discussion on crowdfunding for biosciences, and I wanted to share some of the ideas we discussed. Although focused on life sciences companies, many of the issues are applicable to tech companies too.
The date of an agreement is an important part of most business transactions and M & A is no exception. Many acquisition agreements begin with an “Agreement between” the parties “effective as of” a given date. Does it matter if this effective date is prior to the date the parties actually entered into the agreement? And if so, is this ‘backdating’ problematic or even potentially illegal?
A commonplace among emerging companies is the need to promise investors seats on the board of directors. For a lot of different reasons, it makes sense to make this promise. It is usually a condition to receiving the investor’s capital, so there’s that.