Comments on: Startup Valuation, Preferred Stock and Common Stock Prices

By: Investquest

Investquest — Sat, 28 Mar 2009 22:20:13 +0000

I own common shares in a tech startup and added a convertible note to my position with the option to cash out
in 2 years @ 12% interest or convert to common shares @30% discount. An angel group has come on board
and is pushing early debt holders to sign on to a new convertible note which (among other possibly more
nefarious changes) looks like it would automatically convert to preferred shares. Aside from a whole lot of legal
wrangling going on here, what would be the benefit to the current note holders to sign on as possible preferred
stock owners, with a lowered discount of 25%, and with the angel group calling most of the shots?

By: Bookmarks about Share

Bookmarks about Share — Wed, 10 Dec 2008 19:30:28 +0000

[...] – bookmarked by 1 members originally found by HazieRox on 2008-11-30 Startup Valuation, Preferred Stock and Common Stock Prices http://blog.jparkhill.com/2008/07/17/startup-valuation-preferred-stock-and-common-stock-prices/ – [...]

By: Financing Owner

Financing Owner — Thu, 06 Nov 2008 09:52:51 +0000

investors buy preferred stock, but the company also has common stock that it will issue to employees.
Preferred stock has superior rights, especially including a right to get paid first when the company is sold

By: McVenture » Blog Archive » Startup Valuation, Preferred Stock and Common Stock Prices

Fri, 18 Jul 2008 06:12:18 +0000

[...] I have talked to a lot of people in my career who get confused by the value of shares of stock in a startup company. A venture-oriented company has two or more different kinds of shares with different values attached. …Posted from By Jay Parkhill [...]