Define: Equity Financing
a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Preferred Stock at a fixed valuation, including but not limited to, a pre-money or post-money valuation.
a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Preferred Stock at a fixed valuation, including but not limited to, a pre-money or post-money valuation.
Relevant Circumstances
- When a company raises new capital by issuing preferred stock at a fixed valuation
- If SAFEs or convertible notes are triggered to convert on equity financing
- Where pre-money or post-money valuation cap mechanics apply