Series Seed Preferred Stock Investment Agreement

For others, the prevention of these characteristics is an imperative reason to pursue preferential financing of the seed series at a low price. There are, however, a few creative solutions that find a happy medium. In order to avoid full protection against dilution, a convertible debt slip could include a minimum valuation or valuation limit to balance its valuation limit. In order to avoid multiple liquidation preferences, convertible bonds can be set up to convert only the principal and accrued interest into preferred shares and transform the value of the discount or valuation ceiling of the account convertible into common shares or a series of “shadows” of preferred shares identical to that acquired by venture capitalists. except with respect to its liquidation preference. .

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