Venture Capital

Majority Rules: Why A Majority Of Stakeholders Should Be Able To Amend Convertible Notes

A “majority rules” provision in a convertible note allows for an amendment or waiver of its terms with the...

Convertible Notes: The Maturity Date Is Reached Before A Financing. Now What?

Convertible notes are loans and, like most loans, have a fixed maturity date at which point they are to...

Seed Round Financing: Convertible Note vs. Series A Preferred Stock

Convertible debt and preferred equity are among the most common forms of investment structures used in early stage companies....

What Is A Management Rights Letter And Why Do Venture Funds Ask For Them?

When investing in startups venture capital funds often request what is known as a management rights letter. This letter...

INVESTORS BEWARE: Delaware Court Interprets Meaning of “Funds Legally Available” for Stock Redemptions

On November 10, 2010, the Court of Chancery of Delaware issued an opinion that should cause venture capitalists and...

Small Business Jobs Act of 2010 – Elimination of Capital Gains on QSBS Stock

On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 (the Act). Among...