Welcome to the first installment of Seed Capital review, written by members of the entrepreneurial Services Group at Gray plant mooty. this is our first periodic report analyzing seed capital being raised by companies in minnesota (typically financings of between $100,000 and $2 million).

Seed Capital review is a response to inquiries we frequently get from clients. as advisors to companies and investors involved in early stage financings, we are regularly asked to assess whether proposed deal terms are standard or typical or, more colloquially, “market.” our clients want to know whether early stage investments are typically structured as debt or equity; if equity, whether the investors typically receive preferred or common stock; if preferred stock, they want to know typical terms like liquidation preference (one times or two times the invested amount; participating or non-participating), governance rights, and other similar things. we have our own experience and anecdotal evidence that we think is useful to our clients, but we’ve always thought it would be helpful to have objective data to support our experience, shape our advice to clients, and guide negotiations. we are hopeful that this survey will provide that objective data.

Please see full report below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Gray Plant Mooty | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.