Question
The stated rationale here relates to the investor(s) being concerned that the startup might sell the company before they raise their next round of financing, thus eliminating the opportunity for the debt to convert into equity. Is adding a liquidation preference a reasonable way to mitigate this risk?
How should the startup think about whether to accept these sorts of terms?
Answers: 0 public & 0 private
Recent questions
I sometimes see questions on forums like Quora about how to stop people stealing your invention i...
4 5386 2I am looking for useful sources on protecting copyright. I am in the process of writing a book ba...
3 6115 2What is the current wisdom on compiling news feeds on a third party website so far as copyright i...
1 3962 0This might be a silly question but I’m a bit confused by ‘prior disclosure’ as it applies to pate...
2 4823 1Do you have a question about your invention or intellectual property?
Search the questions below or post your enquiry to one of our experts via Directory.
(User questions are no longer posted publicly on this page.)
