This article was originally published on TechCrunch as part of an ongoing series from industry experts, covering hot topics that founders are wrestling with every day as they build their companies. — With Y Combinatorʼs Demo Day taking place at Pier
The proliferation of SAFEs and Convertible Notes (collectively, “Convertible Securities”) the past few years has given rise to a new problem when raising your Series A financing – “party rounds” with a lot of stakeholders who prove difficult to manage.
A typical startup company authorizes one class of Common Stock with simple rights. An example of such rights is that each share of Common Stock is entitled to one vote on all matters subject to stockholder approval. However, as valuations