Buy the?Shop: Rethinking the No Shop
Photo by Sharon McCutcheon on Unsplash

Buy the?Shop: Rethinking the No Shop

Ariel Beery Ariel Beery

Ariel Beery

Board Chair @ CoVelocity. Advisor & board member for purpose-driven ventures. Engaged in innovation systems, policy development, & implementation.

发布日期: 2021年6月29日
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TL;DR: Many if not most fundraising rounds today involve a No Shop period, when the company raising money needs to stop all fundraising activity while the investor conducts due diligence. This No Shop period, however, is harmful to Startups, and its accepted practice is a detriment to company momentum. As investors feel greater pressure from Tiger Global and other funds adopting their velocity investment practice, an alternative to the No Shop investors can deploy is the Buy the Shop: a time limited convertible note with a right to negotiate or first refusal on the sale of a company’s equities. A Buy the Shop enables investors to do the diligence they need, and for entrepreneurs to focus on building their companies.

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