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The assumption has to be that Milner will participate in follow-on rounds for companies that look like they will be Heroku or bigger.
by mlinsey 16y ago
The assumption has to be that Milner will participate in follow-on rounds for companies that look like they will be Heroku or bigger.
- wheels 16y agoI wonder if there's a clause that requires the ability to participate in later rounds. That would make more sense. Otherwise it's not clear that they'd be able to. Heroku raised $3m a month after demo day; I'm not sure what it would have taken for an angel to be able to get into that round.
- pg 16y agoAll convertible notes convert into shares with the same rights as the shares sold in the equity round in which they convert. These invariably include pro-rata rights.
- billclerico 16y agoI believe a lot of pro rata rights have minimums (i.e. you have to have at least 500,000 shares) to have that right. most series a term sheets that I've seen have set the minimums above any threshold that an angel would meet