Venture financing T's and C's

Feld Thoughts: To Participate or Not (Participating Preferences)

Brad Feld is one of the six or seven venture capitalists that I know of who also write very interesting weblogs. If you are at all interested in venture capital and how it works, Brad has written a number of good posts on the subject. The latest is this post on Participating Preferred. Participation preferences are a standard term sought by venture capitalists as one of the terms and conditions of their investment in a start-up. Brad's write-up is the best I've ever seen on this sometimes complex and sometimes contentious subject.

If you are hungry for more Feld on venture financing, here are a couple more.

This one on liquidation preferences is also quite good.

And this one titled Venture Capital Deal Algebra should be required reading by anyone even thinking about trying to raise money for a start-up. Brad's article points to another good venture capital weblog that you should also be aware of, Fred Wilson's A VC.