The Mechanics of Converting Convertible Notes
Convertible notes are a great tool for venture financing, however, the actual mechanics of converting convertible notes is not a simple task and requires great care.
Buying What You Are Selling
Unless there is an exemption, an Investment Company needs to file with the SEC and make certain disclosures to investors.
The Advice You Give
Generally, any time you are giving advice you need to register. Attorneys, accountants, psychologists, etc. There is no difference when you are giving advice on securities.
The Basics of Convertible Notes
The convertible note is a favorite investment vehicle for many founders and investors alike. This post outlines the key terms and explanations with regard to raising capital through or investing via a convertible note.
Negative Covenants in Lending Transactions
In corporate loan agreements, negative covenants are restrictions and prohibitions that are designed to preserve the credit of the borrower as it was when the lender initially made its underwriting decision.
Restricted Equity v. Options & 83(b) Elections
This blog explains the key differences between restricted equity and options as well as when an 83(b) election applies.
Karthik Srinivasan is a Senior Attorney at Vela Wood. He focuses his practice on complex civil and commercial litigation.
How Much Equity Should We Get?
When dividing equity in a startup, it’s essential to ensure all founders vest, roles are clarified, thorough research is done, and the agreement is formalized with a startup attorney.
Pricing Stock Options (What’s a 409A?)
Equity is the currency of startups, but it comes with tax implications. Early shares usually have a minimal par value, while a 409A valuation sets the real market price as the company grows.
Keep Your Investors Updated
Keeping investors updated fosters trust, accountability, and support. Structured updates that cover progress, challenges, and asks keep investors engaged, prevent surprises, and set startups up for lasting success.