Jul 132011
 
Series AA Financing Documents for NC Corporations

The Y Combinator, an incubator in Silicon Valley, publishes a set of documents for use in the first financing round of early-stage companies.  The documents provide a fairly simple and well-understood set of terms for a financing, centering on a “non-participating” liquidation preference — if the company is sold or liquidated, the investors have to choose between getting their money back (or at least as much of it back as is left) or sharing with [...]

Jul 052011
 

Does this situation sound familiar? Clyde: Hey Karen, how’s the startup going? Karen: Hi Clyde. It’s going great — we almost have our alpha product ready and there’s a lot of excitement, but . . . Well, we’re running out of money and need to find some more investors. Clyde: Hey! I can help! I know some investors who might be interested in your business. How about if I introduce you for, say, 2% of [...]