What does it mean to take equity and get a board seat?
up vote
5
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In this article from Forbes:
500 Startups recently took in equity from Abu Dhabi Financial Group, giving the firm one of its only two board seats.
What exactly does it mean to take in equity from a company and to get a board seat? What exactly happened? I am trying to understand from financial/business point of view
business equity board-of-directors
edited Dec 12 at 4:52
muru
1216
asked Dec 11 at 20:03
Phaser
283
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Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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add a comment |
up vote
5
down vote
favorite
In this article from Forbes:
500 Startups recently took in equity from Abu Dhabi Financial Group, giving the firm one of its only two board seats.
What exactly does it mean to take in equity from a company and to get a board seat? What exactly happened? I am trying to understand from financial/business point of view
business equity board-of-directors
edited Dec 12 at 4:52
muru
1216
asked Dec 11 at 20:03
Phaser
283
New contributor
Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
22
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
Dec 11 at 20:10
add a comment |
up vote
5
down vote
favorite
up vote
5
down vote
favorite
In this article from Forbes:
500 Startups recently took in equity from Abu Dhabi Financial Group, giving the firm one of its only two board seats.
What exactly does it mean to take in equity from a company and to get a board seat? What exactly happened? I am trying to understand from financial/business point of view
business equity board-of-directors
edited Dec 12 at 4:52
muru
1216
asked Dec 11 at 20:03
Phaser
283
New contributor
Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
In this article from Forbes:
500 Startups recently took in equity from Abu Dhabi Financial Group, giving the firm one of its only two board seats.
What exactly does it mean to take in equity from a company and to get a board seat? What exactly happened? I am trying to understand from financial/business point of view
business equity board-of-directors
business equity board-of-directors
edited Dec 12 at 4:52
muru
1216
asked Dec 11 at 20:03
Phaser
283
New contributor
Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited Dec 12 at 4:52
muru
1216
asked Dec 11 at 20:03
Phaser
283
New contributor
Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited Dec 12 at 4:52
muru
1216
edited Dec 12 at 4:52
muru
1216
edited Dec 12 at 4:52
muru
1216
1216
asked Dec 11 at 20:03
Phaser
283
New contributor
Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked Dec 11 at 20:03
Phaser
283
asked Dec 11 at 20:03
Phaser
283
283
New contributor
Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Phaser is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
22
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
Dec 11 at 20:10
add a comment |
22
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
Dec 11 at 20:10
22
22
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
Dec 11 at 20:10
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
Dec 11 at 20:10
add a comment |
2 Answers
2
active
oldest
votes
up vote
8
down vote
accepted
“Taking in equity” means selling shares, generally newly-issued shares. “Getting a board seat” means that you can nominate a person of your choice to be one of the board directors of the company. So 500Startups sold shares to Abu Dhabi Financial Group, who now have a representative on the board of directors.
answered Dec 11 at 20:13
Mike Scott
13.2k3647
If I understand correctly, Abu Dhabi Fin Group made an investment in 500Startups, and in return they got to appoint someone on one of the two board seats of 500Startups. Am I right ?
– Phaser
Dec 11 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 at 21:10
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
Dec 12 at 7:51
@TripeHound I suspect that they mean there are two board seats reserved for external investors, and Abu Dhabi Fin Group have got one of those. There are presumably also some executive directors.
– Mike Scott
Dec 12 at 10:13
add a comment |
up vote
4
down vote
If a person/company makes a large investment in a company they can require as a term of that investment that they be given a seat on the board of directors. This gives them the inside information they desire, and the ability to participate in corporate decisions.
The investment must be large or strategic in order to be given a seat on the board.
answered Dec 11 at 20:11
mhoran_psprep
64.8k888167
add a comment |
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
8
down vote
accepted
“Taking in equity” means selling shares, generally newly-issued shares. “Getting a board seat” means that you can nominate a person of your choice to be one of the board directors of the company. So 500Startups sold shares to Abu Dhabi Financial Group, who now have a representative on the board of directors.
answered Dec 11 at 20:13
Mike Scott
13.2k3647
If I understand correctly, Abu Dhabi Fin Group made an investment in 500Startups, and in return they got to appoint someone on one of the two board seats of 500Startups. Am I right ?
– Phaser
Dec 11 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 at 21:10
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
Dec 12 at 7:51
@TripeHound I suspect that they mean there are two board seats reserved for external investors, and Abu Dhabi Fin Group have got one of those. There are presumably also some executive directors.
– Mike Scott
Dec 12 at 10:13
add a comment |
up vote
8
down vote
accepted
“Taking in equity” means selling shares, generally newly-issued shares. “Getting a board seat” means that you can nominate a person of your choice to be one of the board directors of the company. So 500Startups sold shares to Abu Dhabi Financial Group, who now have a representative on the board of directors.
answered Dec 11 at 20:13
Mike Scott
13.2k3647
If I understand correctly, Abu Dhabi Fin Group made an investment in 500Startups, and in return they got to appoint someone on one of the two board seats of 500Startups. Am I right ?
– Phaser
Dec 11 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 at 21:10
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
Dec 12 at 7:51
@TripeHound I suspect that they mean there are two board seats reserved for external investors, and Abu Dhabi Fin Group have got one of those. There are presumably also some executive directors.
– Mike Scott
Dec 12 at 10:13
add a comment |
up vote
8
down vote
accepted
up vote
8
down vote
accepted
“Taking in equity” means selling shares, generally newly-issued shares. “Getting a board seat” means that you can nominate a person of your choice to be one of the board directors of the company. So 500Startups sold shares to Abu Dhabi Financial Group, who now have a representative on the board of directors.
answered Dec 11 at 20:13
Mike Scott
13.2k3647
“Taking in equity” means selling shares, generally newly-issued shares. “Getting a board seat” means that you can nominate a person of your choice to be one of the board directors of the company. So 500Startups sold shares to Abu Dhabi Financial Group, who now have a representative on the board of directors.
answered Dec 11 at 20:13
Mike Scott
13.2k3647
answered Dec 11 at 20:13
Mike Scott
13.2k3647
answered Dec 11 at 20:13
Mike Scott
13.2k3647
answered Dec 11 at 20:13
Mike Scott
13.2k3647
13.2k3647
If I understand correctly, Abu Dhabi Fin Group made an investment in 500Startups, and in return they got to appoint someone on one of the two board seats of 500Startups. Am I right ?
– Phaser
Dec 11 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 at 21:10
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
Dec 12 at 7:51
@TripeHound I suspect that they mean there are two board seats reserved for external investors, and Abu Dhabi Fin Group have got one of those. There are presumably also some executive directors.
– Mike Scott
Dec 12 at 10:13
add a comment |
If I understand correctly, Abu Dhabi Fin Group made an investment in 500Startups, and in return they got to appoint someone on one of the two board seats of 500Startups. Am I right ?
– Phaser
Dec 11 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 at 21:10
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
Dec 12 at 7:51
@TripeHound I suspect that they mean there are two board seats reserved for external investors, and Abu Dhabi Fin Group have got one of those. There are presumably also some executive directors.
– Mike Scott
Dec 12 at 10:13
If I understand correctly, Abu Dhabi Fin Group made an investment in 500Startups, and in return they got to appoint someone on one of the two board seats of 500Startups. Am I right ?
– Phaser
Dec 11 at 21:06
If I understand correctly, Abu Dhabi Fin Group made an investment in 500Startups, and in return they got to appoint someone on one of the two board seats of 500Startups. Am I right ?
– Phaser
Dec 11 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 at 21:10
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 at 21:10
1
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
Dec 12 at 7:51
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
Dec 12 at 7:51
@TripeHound I suspect that they mean there are two board seats reserved for external investors, and Abu Dhabi Fin Group have got one of those. There are presumably also some executive directors.
– Mike Scott
Dec 12 at 10:13
@TripeHound I suspect that they mean there are two board seats reserved for external investors, and Abu Dhabi Fin Group have got one of those. There are presumably also some executive directors.
– Mike Scott
Dec 12 at 10:13
add a comment |
up vote
4
down vote
If a person/company makes a large investment in a company they can require as a term of that investment that they be given a seat on the board of directors. This gives them the inside information they desire, and the ability to participate in corporate decisions.
The investment must be large or strategic in order to be given a seat on the board.
answered Dec 11 at 20:11
mhoran_psprep
64.8k888167
add a comment |
up vote
4
down vote
If a person/company makes a large investment in a company they can require as a term of that investment that they be given a seat on the board of directors. This gives them the inside information they desire, and the ability to participate in corporate decisions.
The investment must be large or strategic in order to be given a seat on the board.
answered Dec 11 at 20:11
mhoran_psprep
64.8k888167
add a comment |
up vote
4
down vote
up vote
4
down vote
If a person/company makes a large investment in a company they can require as a term of that investment that they be given a seat on the board of directors. This gives them the inside information they desire, and the ability to participate in corporate decisions.
The investment must be large or strategic in order to be given a seat on the board.
answered Dec 11 at 20:11
mhoran_psprep
64.8k888167
If a person/company makes a large investment in a company they can require as a term of that investment that they be given a seat on the board of directors. This gives them the inside information they desire, and the ability to participate in corporate decisions.
The investment must be large or strategic in order to be given a seat on the board.
answered Dec 11 at 20:11
mhoran_psprep
64.8k888167
answered Dec 11 at 20:11
mhoran_psprep
64.8k888167
answered Dec 11 at 20:11
mhoran_psprep
64.8k888167
answered Dec 11 at 20:11
mhoran_psprep
64.8k888167
64.8k888167
add a comment |
add a comment |
Phaser is a new contributor. Be nice, and check out our Code of Conduct.
Phaser is a new contributor. Be nice, and check out our Code of Conduct.
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22
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
Dec 11 at 20:10