Corporate & Securities Law
: The Startup LawyerPreferred Stock: Where ?F? in a Class Can Equal Success
By Ryan Roberts (index)
If you pay any attention to TechCrunch or Venturebeat, you’ll see stories titled “Startup Raises $X Million in Y-round Financing.” When the “Y” in story is a large number, do not assume that the startup company is tanking. Instead, the startup could be gaining momentum and approaching positive cash flow…but just needs one more round to get over the top.
Rounds of financing are tied to classes of preferred stock. You can name the preferred stock rounds whatever you like, but the norm is to follow the alphabet. For example:
1st round = Series A
2nd round = Series B
3rd round = Series C
26th round = Series Z
If a startup raises its rounds of financing at increasingly higher company valuations, each new class of preferred stock will represent an increase in price. This means that value is being created and progress is being realized at the startup. Thus, a startup may be going through a sixth-round financing (or Series F) simply because the startup needs more time or money than it anticipated.
Full post as published by The Startup Lawyer on November 28, 2008 (boomark / email).
Buffett Steals Goldman Stock
Buffet bought $5 b in Goldman Sachs preferred stock, giving him close to 62% of all the Goldman preferred stock outstanding...
Supreme Court Upholds Preferred Stock Provision
Hildreth v. Castle Dental Centers, Inc., Del. Sup. C.A. No. 195, 2007 (November 15, 2007)...
The No Longer Preferred Preferred Stock
Lately, there's been whining and sniveling from some corners of the commercial banking sector about the write down of Freddie Mac and Fannie Mae preferred stock as a result of the federal takeover of those political contribution ATMs stalwarts of...
The Citigroup Bailout: More Confusion
The markets hailed the fact of the Citigroup bailout, but we are just now digesting the details...
Preferred Stock=Subordinated Debt
Treasury's "equity" injection in the form of preferred stock is really a loan, not an equity investment, but it is structured to bolster bank capital adequacy.
Buffett Bails Out Goldman Sachs
Goldman Sachs announced that it has reached an agreement to sell $5 billion of perpetual preferred stock to Berkshire Hathaway, Inc...
Stock Splits and Reverse Stock Splits
How splits can affect stock value
Paxil Lawsuit
Paxil Claims, Lawsuits, and Injuries
Do you get audited at 10,000 dollars in one transaction or 10,000 period?
You don't get audited, it is simply a reporting proceedure because of 9/11....
My mother-in-law recently passed and did not have a will. She has two adult children who are in agreement about a 50-50 split. She has some stock options and a house with a balance, but the broker and mortgage company sa
In most jurisdictions, when someone passes away without a will a court proceedin...
Where can I find out what is the Statute of Limitations for a dispute with stock brokerage firm on an over payment of foreign tax for the interest I received thru the brokerage from abroad?
First, it is possible that the documents you signed when you opened the account ...
I feel everyone should be treated equal in this world, but in a lot of cases that doesn't happen. I live in a white community with only 2 to 3 African American families. I belong to one of them. A week after getting into
I would call the courthouse and ask for the judges assistant, and ask them why t...
What are best stock investment newsletters?
I have profited from reading changewave stock investment newsletter....
Wachovia
to Pay $39 Million in Proposed Settlement of Stock Broker Overtime Class Action
Common Stock Shareholders
LaBranche & Co. LLC agrees to $13 million securities fraud class action settlement.
MRV Communications, Inc. 401(k) / ERISA Stock Fraud
MRV Communications, Inc. 401(k) / ERISA Stock Fraud
Texron Inc 401(k) / ERISA Stock Fraud
Texron Inc 401(k) / ERISA Stock Fraud
MGM Mirage 401(k) / ERISA Stock Fraud
MGM Mirage 401(k) / ERISA Stock Fraud
The9 Ltd, 401(k) / ERISA Stock Fraud
The9 Ltd, 401(k) / ERISA Stock Fraud
#1 Online Legal Resource
On 08-28 at 21:13PM
Ten months later, Fed must reveal names of emergency lending recipients #FOIA
On 08-25 at 19:02PM
Squeaky Fromme, would-be Ford assassin and Manson devotee, released from prison
On 08-14 at 15:19PM
Likely unintended consequence of cash-for-clunkers stimulus is dampening of 2010 spending
On 08-14 at 14:34PM
Palm seeks to halt Palm Pre Android theme on copyright and trademark ground
On 08-12 at 17:30PM
Congressional investigation demonstrates Karl Rove lied about his active role in US attorney's firing
On 08-12 at 16:20PM
Family of New York City swine flu victim to sue city for failure to secure school #nyc #swineflu
On 08-12 at 12:59PM
Real Network's DVD copying software deemed to break DMCA's anti-circumvention provisions
On 08-12 at 12:57PM
Prepaid funeral operators indicted for $100 Million fraud
On 08-12 at 12:53PM
NY Jets join Cincinnati, Dallas, Green Bay, Houston & Seattle #NFL teams offering branded state lottery games
On 08-12 at 12:43PM
Do you get audited at 10,000 dollars in one transaction or 10,000 period?
You don't get audited, it is simply a reporting proceedure because of 9/11....
My mother-in-law recently passed and did not have a will. She has two adult children who are in agreement about a 50-50 split. She has some stock options and a house with a balance, but the broker and mortgage company sa
In most jurisdictions, when someone passes away without a will a court proceedin...
Where can I find out what is the Statute of Limitations for a dispute with stock brokerage firm on an over payment of foreign tax for the interest I received thru the brokerage from abroad?
First, it is possible that the documents you signed when you opened the account ...
I feel everyone should be treated equal in this world, but in a lot of cases that doesn't happen. I live in a white community with only 2 to 3 African American families. I belong to one of them. A week after getting into
I would call the courthouse and ask for the judges assistant, and ask them why t...
What are best stock investment newsletters?
I have profited from reading changewave stock investment newsletter....
 |
|
Contact Us | About Us | Celebrity Law Blog |
Our Partners | Disclaimer
| Law Blog Directory
| Law Jobs
| Law Tweets
| Get GoDaddy Hosting
All original material © 1999-2009 by USLaw.com. All other material, including Blog Directory feed content, are © by their respective copyright holders. |