Flint Startup Attorneys & Lawyers

What is Tranche Investment?

Tranche investment lets venture capital and other investors split investments into parts. They can give money to businesses over time instead of all at once. Usually, a business getting a tranche investment will get prenegotiated payments as long as it achieves financial milestones decided by the investor. The word tranche comes from the French word for slice.

Structured Financing: What is it?

Structured financing is a broad term for the many ways businesses and banks can divide risky financial products, including loans. Businesses and banks often sell these new financial products to specialized third-party investors. These products often include insurance policies, mortgages, and other types of debt, including tranches. Tranching or tranche investment is a relatively new product to help investors lower risk and let startups get more fu

...

This article assumes that you already know what “seed money” means. But if you need more information on the topic, please take a look at this introductory article on seed money.

Are you looking to start a company? If so, you may be looking for seed money to get your business off the ground. While considering how to bring in seed money, here are some things for you to consider:

1. Understand the Difference Between Seed Funding and Venture Capital

Seed funding and venture capital are very similar, but there are three key differences.

• Seed funding arrangements give more flexibility than venture capital.

...

To start a transportation business, you will need to decide which type of business you intend to create. Options include: a taxi service, bike rental, limousine service, owner/operator trucking, moving company, specialized transportation service, livestock transportation, transporting boats, air transport, marine shipping, medical transport or services for seniors. The type of company you use to establish should be determined based, among other things, on the need and competition in the area you decide to work in.  Once you figure out what you want to transport,you'll need to build a plan to establish how you are going to provide these services.

Determine What Kind of Business You Want

Do you want to run a sole proprietorship, limited liability

...

What Is Strike Price?

Strike price is the price at which a specific derivative contract can be executed. It is the most important indicator of value for contracts.

The strike price, also known as the exercise price, is usually decided when a contract for an option is first written and agreed.

Some financial products receive value from other financial products. These products are called "derivatives," and there are two major types:

• Calls give the holder the right, not the obligation, to buy stock in the future at a certain price.
• Puts give the holder the right, not the obligation, to sell a stock in the future at a certain price.

The price at which calls and puts are bought or sold is called the strike price, which is used to tell call and put contracts apart.

Why Is Strike Price Important

The strike price is important because

...

What Is a Search Fund?

A search fund is an investment vehicle, created in 1984, to help connect investors with entrepreneurs and manage a newly created company. The funds are usually set up by one or two entrepreneurs who raise investment funds from different venture capitalists to find suitable investment opportunities. The creation of a search fund is generally accredited to Professor H. Irving Grousbeck from Stanford Graduate School, who created the model to help two students who were looking to raise funds for buying a business. 

A search fund makes it possible for entrepreneurs to connect with investors and raise equity investments. There are different stages of the development of the search fund, such as:

• Raising the initial capital
• Finding an acquisition deal of companies valued between $5 million and $30 million
• Mana

...