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Download AskVenture.com Professional Excel Cap Table Template (.xls)
AskVenture.com professional excel cap table is available for US$9.99 only. It’s an excel template that you can plug in your own variables and it will automatically calculate all the figures and information, and the template will generate a complete cap table for a company. It shows the capitalization of a company before and after 3 [...]
Benefits of Investing in a Startup
Benefits of Investing in a Startup When looking at where to invest, it can be difficult to decide whether or not it is worth putting your money into a startup company. The risk is often much larger with startups, but then again, so is the return which you are likely to see should the business [...]
What is a variable interest entity (VIE) structure for foreign investment in China (PRC)?
What is a variable interest entity (VIE) structure for foreign investment in China (PRC)? A variable interest entity (VIE) refers to a structure in which an entity established in China which is fully or partially owned by a non-Chinese company, through certain contractual or services arrangements, has control over a Chinese operating company holding the necessary licenses [...]
What is a statutory declaration under Hong Kong law and how to make one?
This article discusses statutory declarations under Hong Kong law. What is a statutory declaration? A statutory declaration is a declaration made in the manner provided by the Oaths and Declaration Ordinance (Chapter 11 of the Laws of Hong Kong). The Oaths and Declaration Ordinance specifies the forms that a statutory declaration should be made. According [...]
Where can I look up Hong Kong (HKEx) listed companies information, announcements, circulars, financial results, annual reports, prospectuses?
Where can I look up Hong Kong (HKEx) listed companies information, announcements, circulars, financial results, annual reports, prospectuses? http://www.hkexnews.hk Just enter the stock code, period to be covered, information category and search. The website is solely for the dissemination of information of companies listed on the GEM or Main Board of the Hong Kong Stock [...]
Lock-up restrictions on controlling shareholders following a Hong Kong Stock Exchange (HKEx) IPO
Controlling shareholders of a Hong Kong listed company are subject to certain lock-up restrictions regarding disposal of their shares following the company’s initial public offering (IPO) on the HKEx. The restrictions come in two phases (6+6). First 6 months’ lock up From the date of IPO prospectus to 6 months after the initial listing of [...]
Board composition requirements of a Hong Kong listed company under the Hong Kong Stock Exchange (HKEx) Listing Rules
The Hong Kong Stock Exchange (HKEx) introduced some new amendments to the HKEx Main Board Listing Rules in 2012. Some of the changes came into effect on 1 January 2012 and some on 1 April 2012. New HKEx Main Board Listing Rules (LR3.10A) One of the amendments relates to the requirements of the composition of the [...]
What is right of first refusal (ROFR) in a venture capital (vc) financing?
In a venture capital term sheet, you’ll find a right of first refusal (ROFR) clause. This right is often given to preferred shareholders. What is right of first refusal (ROFR)? The right of first refusal is the right to acquire shares before shares are transferred to a third party. For example, if A (company founder) [...]
What is pre-emptive right in a venture capital / private equity (vc/pe) investment?
You’ll almost always see a pre-emptive right clause in a venture capital / private equity (vc/pe) term sheet or share subscription agreement. Sometimes, pre-emptive right is also called pre-emption right or subscription right. This is a right typically demanded by vc/pe investor. What is pre-emptive right? Pre-emptive right is the right of existing shareholders to [...]
Listing Requirements of the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange (HKEx)
As you probably know, the Hong Kong Stock Exchange (HKEx or HKSE) has two trading boards on which shares of a company can be listed. The first trading board is the Main Board and the second trading board is the Growth Enterprise Market (GEM). Last time, I wrote about the listing requirements of the Main [...]
Popular Articles
Sample liquidation preference clause in a typical venture capital term sheet
I get asked a lot for a sample clause on liquidation preference used in a typical venture capital term sheet. So, I’ve put together an all-in-one sample clause here for your reference. The good thing about this sample clause is that it covers or can be modified to cover the scenarios of (1) participating preferred with [...]
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Download pre post ipo global offering stats shareholding cap table spreadsheet template sample xls
This is a spreadsheet used by a major investment bank and law firms showing the IPO offering stats of a company contemplating IPO in a real-live IPO deal (with sensitive and confidential information removed). It is divided into three parts: 1. Offering stats at IPO (market cap, forecast earning, pe ratio, offer price, IPO proceeds, [...]
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Exercise price of share option under a share option scheme of a Hong Kong listed company
This article sets out the basis of determination of the exercise price of share options to be granted under a share option scheme of a company listed on The Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange). Hong Kong Listing Rules If the shares of a company is listed on the Hong Kong [...]
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Venture capital exits – trade sale vs IPO – compared and analyzed
Way before a venture capitalist invests in a company, he is already thinking how and when to exit from the investment. This article tells you why and compares between the two venture capital exits – trade sale and IPO. Illiquid nature and limited life-span of a VC fund A well-planned exit is particularly important in a [...]
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What is vesting period of an employee stock option plan (ESOP)?
This article discusses what vesting period is in the context of employee stock option plan (ESOP) – something that a company needs to decide when adopting an ESOP or when granting options under an ESOP. I will also set out different examples of vesting periods. What is vesting period? Vesting period refers to the minimum period [...]
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Participating vs non-participating preferred stock in liquidation preference
What is liquidation preference? Liquidation preference refers to preferred stockholders’ rights to receive a certain amount for the preferred stock they hold in preference to common stockholders in the event that a company goes into liquidation. What is non-participating preferred stock? Non-participating preferred stock means in the event of a liqudiation, preferred stockholders will receive [...]
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Download Sample Share Cap Table Template of a Venture Capital Term Sheet
About this cap table This is exactly the kind of cap table that law firms or venture capitalists would use in a venture capital financing transaction. It shows you: 1. Capitalization of a company at founding (before preferred stock financing – Series A financing) 2. Capitalization of a company after preferred stock financing – Series A [...]
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What is a venture capital term sheet? Is a Series A term sheet binding?
A term sheet is a document that summarizes the key terms of a proposed investment. It is sometimes called a letter of intent. Typically, a term sheet is not binding, except for confidentiality, exclusivity and expenses (or transaction fees). Exclusivity is sometimes called no-shop no-solicitation clause. Click here to download your free sample term sheet [...]
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Download Sample Venture Capital Term Sheet / Letter of Intent Free
Download your sample venture capital term sheet / letter of intent now. Please note that this is a term sheet taken from the National Venture Capital Association. It does not constitute legal advice. If you have any doubt as to this term sheet, please consult your legal adviser or professional consultant.
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How to Calculate Liquidation Preference of Preferred Stock in a Venture Capital Financing?
What is liquidation preference? Liquidation preference refers to preferred shareholders’ rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that a company goes into liquidation. The scope of liquidation preference varies between different term sheets. Some may be extremely favorable to investors, some may [...]
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