Investor Connect Podcast

In this episode, Hall welcomes Nick Iovacchini of KettleSpace, a New York City-based drop-in coworking that partners with local businesses. A former college baseball player, Nick has been an entrepreneur since leaving college. He used his experience in the restaurant space to co-found KettleSpace as a way to provide affordable coworking spaces as well as support local restaurants.

Nick discusses the advantages of a partnership between coworking and food service. He also highlights some of the challenges in the space and provides advice for investors looking into the coworking sector. Finally, Nick talks about the future of KettleSpace, and why he believes it will translate to markets beyond NYC.

Direct download: Nick_Iovacchini_of_KettleSpace_Inc.mp3
Category: -- posted at: 1:39pm CDT

The terms sheet sets out Drag along rights and Protective Provisions

Drag along rights give the investor the right to force the shareholders (founders and others) to sell the startup. Drag along rights are common in VC deals.

The primary reason for a drag along rights clause is that the lead investors want out and require others to join.

Protective provisions state that if the founders want to take any action that might affect preferred shareholders’ investments, the founders have to inform the preferred shareholders and get their collective approval first.

Here’s a list of common protective provisions:
• Merge, sell, or liquidate the company, or any transaction that results in a change of control of the company.
• Change the capitalization structure of the company
• Issue stock senior to or equal to the stock held by the preferred share investor( s).
• Change the certificate of incorporation or bylaws.
• Change the composition or size of the board of directors.
• Pay or declare dividends.
• Take on a debt obligation such as a loan.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Let’s go startup something today!

Direct download: Startup_Funding_Espresso_--_Drag_Along_Rights__Protective_Provisions.mp3
Category: -- posted at: 12:13am CDT