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.
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