Blended Preferences are when a startup has multiple classes of preferred stock and each class has the same rights in the event of a liquidation. When classes or shareholders have equal rights, the equal rights are often called pari passu […]
Board Consent is the consent to some company action by the board of directors for actions or transactions that need director approval. Board consent can be effected at a meeting or in writing.
A Board Observer has the right to observe or be present at the board of directors’ meetings but cannot vote on matters before the board of directors. It can be valuable to be at board meetings when decisions are made.
A Boilerplate is a standard provision that appears in every legal document and effectively means the same thing in every document. The provision may be worded differently, but the provision achieves the same result.
Book Value is the total assets minus the total liabilities of a company. The book value of an asset, as shown on a balance sheet, is typically based on its original cost minus accumulated depreciation. The book value is used […]
A Balance Sheet is one of the four main financial statements that provides a summary of a company’s finances at a specific point in time. All balance sheets include a company’s assets, liabilities, and equity. Unlike other financial statements, the […]
Bridge Financing is temporary funding for when a startup is running out of cash and needs an infusion of capital to operate the company until the company can raise permanent capital in the form of equity or debt. Bridge financing […]