A No-Action Letter is a letter from the SEC that states the startup’s anticipated action most likely will not result in enforcement action by the SEC. A startup who does not know if its service or product will break federal […]
The National Venture Capital Association (NVCA) is a venture trade association that pools resources and fosters innovation.
Newco is a name given to a hypothetical company for ease of description before the company actually has a name. Well, other than the few companies actually named Newco. Yes. They exist. We checked.
A No-Shop Clause is a provision in an agreement, usually a letter of intent or term sheet, whereby the parties agree not to pursue an investment or deal with any third parties for a set period of time.
Non-Solicitation Agreements are usually in employment agreements to prevent the contracting employee from soliciting the company’s other employees and the company’s customers for a competing business venture.
A Non-Disclosure Agreement (NDA), also known as a confidentiality agreement, is a contract in which a party agrees to protect confidential information from disclosure to other parties. Be leery of asking investors to sign NDAs; they see too many deals […]
The Narrow-Based Weighted Average is an anti-dilution protection for equity holders. If equity is sold at a lower price than the price an investor paid previously, the price the investor previously paid is discounted. The price the investor originally paid […]
Non-Voting Stock is stock without voting rights. Issuing non-voting stock allows the company to raise capital without giving up decision making power or control to new investors.
Non-Participating, in regard to preferred stock, is preferred stock that only receives liquidation disbursements equal to its liquidation preference and does not receive additional liquidation disbursements in equal proportion to its ownership percentage.