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Hey Guys, Thanks for posting this. Could anyone please clarify for me following things? I have just started to learn about startup capital. 1. Since company is

by bidev 13y ago

Hey Guys, Thanks for posting this. Could anyone please clarify for me following things? I have just started to learn about startup capital. 1. Since company is now closed down what happens to Investor's money ? Do they just loose all or do owners have to return it ? ( sorry if this seems pretty noob but I would like to know it ) 2. What does 1 year maturity mean in convertible notes ? 3. Shouldn't the Net Operating Income be negative ? Since they had income of $280696 and Expense were $2,665,192.34 ? Did they count investor's money as income ? or how did they arrive at $2,384,224.67 ? Thank you for the reply.

karangoeluw 13y ago
I can answer the first one > 1. Since company is now closed down what happens to Investor's money ? Do they just loose all or do owners have to return it ? They lose it. http://en.wikipedia.org/wiki/Venture_capital http://en.wikipedia.org/wiki/Venture_capital
- bidev 13y ago
  Thank you both.
hedgehog 13y ago
PG has an essay that covers a lot of how this works (2005): http://paulgraham.com/startupfunding.html http://paulgraham.com/startupfunding.html This Techcrunch article is about convertible notes but covers some of this stuff and has some good links in it (2012): http://techcrunch.com/2012/04/07/convertible-note-seed-financings/ http://techcrunch.com/2012/04/07/convertible-note-seed-finan... And a more lawyerly perspective (2010): http://www.saul.com/media/tool/997_PDF_2534.pdf http://www.saul.com/media/tool/997_PDF_2534.pdf
teej 13y ago
In a scenario where a company is being shut down and there is still cash in the bank, the remaining funds would be distributed to the investors.
- deleted 13y ago
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