Investments
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SAFE: start-up financing and future share subscriptions
A SAFE funds a company ahead of a future equity round. The agreement version, conversion terms, treatment of other settlement events and dilution all matter.
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Why does a VC fund refuse financing?
A refusal to fund a project does not necessarily mean it is weak. The fund’s strategy, the company’s stage of development and its potential for growth all matter.
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Selling a business: liability for representations and warranties
Representations, warranties and W&I insurance allocate transaction risk. When comparing protection, distinguish the transaction value from the liability limit.
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Sand Hill Road — in the land of the American dream
Sand Hill Road and the history of venture capital: an essay on the connections between technology, entrepreneurship and capital, with a correction to the account of Intel’s founding.
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Transaction pricing: completion accounts, earn-outs and locked boxes
A price based on the company’s position at completion, post-acquisition results or historical locked-box accounts? These mechanisms address different risks.