We are doing due diligence on one of our investment targets, and I am comparing terms in the shareholder agreements for common and preferred shares. Recognizing that the preferred shares will have some advantages over common shares, what terms should I watch for that would be considered unreasonable treatment of common shareholders?
Accepted Answer
Nov 11, 2023
Venture Investors typically take preferred positions in portfolio companies. The early stage investment agreements are fairly standardized. For a review of a standard preferred offering, review the Series Seed documents below:
https://www.seriesseed.com/
https://www.seriesseed.com/