Deal Terms
Instruments and clauses: SAFEs, notes, warrants, preferences, and side letters.
Articles from the Syndicately blog on this topic.
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Side Letters in Private Investments
Read article: Side Letters in Private InvestmentsA side letter changes an SPV’s terms for one investor only, often through an MFN clause, co-investment rights, or a reduced fee. Here is…
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Risks of Investing Through an SPV
Read article: Risks of Investing Through an SPVSPV investing adds illiquidity, concentration, and fee risk on top of the underlying company’s own risk. Here is what to weigh before committing capital.
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Major Investor Information Rights: How They Work
Read article: Major Investor Information Rights: How They WorkMajor investor information rights explained: what threshold companies set, what financial information gets shared, and how an SPV passes it through to its LPs.
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Pre-IPO SPV Structure: A Checklist Before You Invest
Read article: Pre-IPO SPV Structure: A Checklist Before You InvestWhat to confirm before investing in a pre-IPO SPV structure: company consent, transfer restrictions, IPO lockups, Rule 144 holding periods, and how distributions work.
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Pay-to-Play Provisions in Venture Financings
Read article: Pay-to-Play Provisions in Venture FinancingsHow a pay-to-play provision forces existing investors to fund a future round or lose their preferred rights, and what an SPV sponsor should plan…
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Anti-Dilution Provisions: Full Ratchet vs. Weighted Average
Read article: Anti-Dilution Provisions: Full Ratchet vs. Weighted AverageFull ratchet and weighted average anti-dilution compared, with a worked example showing how each affects an SPV’s preferred stock position after a down round.
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ROFR on Startup Shares: How the Right of Refusal Works
Read article: ROFR on Startup Shares: How the Right of Refusal WorksHow a right of first refusal on startup shares works, how it differs from co-sale and drag-along rights, and a worked example of a…
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Bridge Round Financing: Notes, SAFEs, and Extensions
Read article: Bridge Round Financing: Notes, SAFEs, and ExtensionsHow a bridge round differs from an extension round, when to use a convertible note versus a SAFE, and a worked example of how…
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Navigating Individual Deal Investments
Read article: Navigating Individual Deal InvestmentsVenture capital has seen a lot of changes lately, with more and more people choosing to invest together in what’s known as syndicate investing.…
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Understanding Stock Warrants and SPVs
Read article: Understanding Stock Warrants and SPVsStock warrants and options may be overlooked by startup entrepreneurs, but Syndicately enables SPVs to raise capital using warrants. Companies issue warrants to raise…