Guide to the legal aspects of early stage financing

Author

Ahmed, Arshad A.

fYear

2001

fDate

2001

Firstpage

62

Lastpage

63

Abstract

Early stage financing involves the following parties: a start-up business looking for cash, and venture investors looking to make an investment. This paper discusses the legal aspects of early stage financing, including venture investors, differing interests between investors and business, determination of the bundle of rights, the nonbinding term sheet, purchase price and valuation, preserving value, conversion and conversion price, redemption and dividends, liquidation preference, board seat/information rights, voting rights/protective provision, right of first refusal/special features, registration rights, definitive agreements, and finally legal issues or risks associated with a technology deal

Keywords

economics; electronics industry; industrial property; investment; legislation; board seat rights; conversion price; dividends; early stage financing; first refusal rights; information rights; investor rights; legal aspects; liquidation preference; nonbinding term sheet; protective provision; purchase price; purchase valuation; redemption right; registration rights; start-up business; technology deal; value preservation; venture investors; voting rights; Aggregates; Business; Companies; Cost accounting; Investments; Law; Legal factors; Security; Silicon; Voting;

fLanguage

English

Publisher

ieee

Conference_Titel

Microelectromechanical Systems Conference, 2001

Conference_Location

Berkeley, CA

Print_ISBN

0-7803-7224-7

Type

conf

DOI

10.1109/MEMSC.2001.992743

Filename

992743