venture capital
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Liquidation preferences: how are investment proceeds shared?
Liquidation preferences change the allocation of proceeds between investors and other shareholders. We examine their economics, including a capped participating preference example.
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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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How often does a VC fund exit through an IPO?
VC funds investing in growing companies primarily seek the target return envisaged when the investment agreement is signed, after a specified investment period, usually up to ten years. The following exit routes are currently identified…
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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.