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Preferred Stock Pt. 3: Protective Provisions Operational Flexibility and Protecting Investors’ Investment
When you sign a term sheet for a priced round, the relationship with your investors fundamentally changes. Before the investment, you controlled the company absolutely. You could amend…
4 min read
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Preferred Stock Pt. 2: Liquidation Preferences Who Gets Paid When
In the optimistic glow of a term sheet, founders naturally focus on the headline number: the post-money valuation. It’s what you tell your parents, your team, and your…
4 min read
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Preferred Stock Pt. 1: What You’re Actually Selling When You Raise Venture Capital
There is a specific moment in every founder’s journey when the business becomes more complicated than the product. It usually happens when you receive your first term sheet…
4 min read
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SAFE Fundamentals Pt. 4: Strategy for Setting Terms and Avoiding Death Spirals
You understand what SAFEs are. You understand how they convert to shares. You understand the option pool shuffle and why founders who think they sold 20% end up…
4 min read
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SAFE Fundamentals Pt.3: Beware The Option Pool Shuffle – Why Founders Lose Control at Series A
The Option Pool Shuffle: Why Founders Lose Control at Series A In the previous post, we covered how SAFEs convert to equity—the formulas, the mechanics, the math. If…
4 min read
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SAFE Fundamentals Pt. 2: How SAFEs Convert Into Shares
A SAFE is a promise—you give an investor cash today, and they receive equity in the future when certain events trigger conversion. But how exactly does that conversion…
4 min read
