Blog Articles

When a company decides to issue new stock offerings, investors may have the option to exercise either participation rights or right of first refusal. Both have their advantages and disadvantages, and it largely depends on the investor’s investment goals and risk tolerance. In this article, we’ll break down the key differences between participation rights and […]

As a seasoned expert in business transactions, I have seen firsthand the importance of including clauses such as Right of First Refusal and Co-Sale Rights in agreements. These clauses can have a significant impact on the control and value of a company, and understanding how they work is crucial for protecting your interests.

Warrants are an often-overlooked financial instrument that can offer investors a unique opportunity to potentially profit from a company’s growth without having to invest a large sum of money upfront. A warrant is essentially a derivative that gives the holder the right to buy additional shares of stock at a fixed price, within a designated […]

Startups often use anti-dilution clauses to protect their investors in case of future equity financings. However, these clauses can be complex and have different implications for both the company and investors. Understanding the different types of anti-dilution clauses and their potential impact is crucial for startup founders and investors alike.

When you’re raising money for your startup, there are a lot of terms and concepts that you need to familiarize yourself with. One of the most important of these is “liquidation preference.” Put simply, this refers to the order in which investors get paid in the event of a liquidation event. There are several different […]

When it comes to funding a startup, one of the key factors investors consider is the company’s pre-money valuation. Pre-money valuation is the value of a company prior to any external funding, including investments from venture capitalists or angel investors. Understanding this concept is crucial for startup founders who are looking to raise funds for […]

As a startup founder or investor, understanding the different types of shares is crucial for determining ownership, voting rights, and potential dividends. Here are the most common types of shares: 1. Common shares: These are the most basic type of shares, and they represent ownership in the company. Common shareholders have the right to vote […]

As a startup founder or investor, one of the most important documents you will encounter is the term sheet. This document outlines the key terms and conditions of an investment or partnership, and serves as the foundation for negotiations and finalizing the deal. So, what exactly is a term sheet? In essence, it’s a document […]

The middle market is a crucial segment of the economy, comprising companies with annual revenues between $10 million to $1 billion. In recent years, these companies have been on the rise, outpacing both large and small businesses in terms of growth and job creation. This post explores the factors driving the success of middle market companies and why investors should pay attention to this dynamic sector.