Recent Startup Expert Legal Chats
Issue with borrower not paying as agreed.
Startup
Promissory Note
California
Customer:
Issue with borrower not paying as agreed. I loaned money to a start-up company. I bought $50k worth of stock. They reached out to me and offered 30% interest, so I loaned them $200k. At first, they paid but have now stopped. They’re saying that the 30% interest rate is illegal, even though they voluntarily offered it. Now they’re asking me to convert the debt into equity in the company, but I’m not interested. I just want to cash out. Can you help?
Dolan W.
Hi ***, and thank you for reaching out! My name is Dolan, and I’d be happy to help with this. I carefully review each question and provide responses based on my years of hands-on experience as a lawyer.
It sounds like a complicated and frustrating situation you have. Before I get into specific advice, let me ask a few questions so I can get better information about this:
1. Do you have a signed agreement that includes the loan terms, specifically the 30% interest rate?
2. Have they provided any specific legal basis for claiming the interest rate is illegal?
3. Have they made any partial payments, or have the payments totally stopped?
These details will help me tailor my advice to your situation.
What is the difference in pre-money and post-money valuations?
Startup
SAFE Note
Customer:
What is the difference in pre-money and post-money valuations? If I could get a clear explanation of these, it would be relaly helpful.
Dolan W.
Hi *****, My name is Dolan, and I’d be happy to help with this. I carefully review each question and provide responses based on my years of hands-on experience as a lawyer. The terms "pre-money" and "post-money" valuations are crucial in understanding a company's value during fundraising rounds. Pre-money valuation refers to the company's value before any new investment, while post-money valuation is the value after the investment is included. Are you looking to calculate these valuations for a specific situation, or are you exploring the general concept?
View Full Conversation >Should I use a SAFE note template I found?
Startup
SAFE Note
Customer:
Should I use a SAFE note template I found? I want to make sure I do this right and fill the template our correctly, if I end up using it.
Dolan W.
Hi *****! My name is Dolan, and I’d be happy to help with this. I carefully review each question and provide responses based on my years of hands-on experience as a lawyer. SAFE notes are great tools for early-stage financing, but using a generic template without customization can pose risks. It depends on the template, your specific deal terms, and whether it matches your situation. Can you tell me a bit more about the template and the terms you’re working with?
View Full Conversation >I am an investor and have a SAFE note to sign. what should i look for?
Startup
SAFE Note
Customer:
I am an investor and have a SAFE note to sign. what should i look for?
Dolan W.
Hi *****, my name is Dolan, and I’d be happy to help with this. I carefully review each question and provide responses based on my years of hands-on experience as a lawyer. SAFE notes are popular for startups, but there are a few key details to look at before signing. Do you have the note on hand, or would you like me to outline general areas to focus on first?
View Full Conversation >What is the best way to raise money from angel investors?
Startup
SAFE Note
Customer:
What is the best way to raise money from angel investors? I am the co-founder of a tech product and me and my co-founder want to go and try to raise money from investors. We have a bit of traction but are unsure on what the best way to do this is.
Dolan W.
Hello! My name is Dolan and thank you for trusting contractscounsel.com for your answers. Do you have partners in this business? How much equity do you intend or want to give away?
View Full Conversation >Downloaded Y Combinator SAFE note and need to fill it out.
Startup
SAFE Note
Delaware
Customer:
Downloaded Y Combinator SAFE note and need to fill it out. I want a $4m cap and 20% discount. Have questions about the fields in it and how to fill them out. Is this something you can help me with?
Dolan W.
Hi *****! My name is Dolan, and I’d be happy to help with this. I carefully review each question and provide responses based on my years of hands-on experience as a lawyer. The Y Combinator SAFE note is a great starting point, and I can guide you through filling it out correctly. Since you mentioned a $4M valuation cap and a 20% discount, we’ll need to ensure those terms are properly included. Which specific fields are you unsure about?
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