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Startups Raising Capital Through FlashFunders Preferred Stock

August 05, 2016

Before you plunge into your next investment, it's always good to educate yourself on what security types are offered on FlashFunders. We will dive into which companies provide a convertible security, along with a quick explanation into how it works. 


Startups That Offer Preferred Stock

FlashSeed Preferred Stock: (LifeBlink, SharkStopper, Vessix, Content Launch)

For investors: Flashseed Preferred Stock allows investors to convert their shares of FlashSeed Preferred Stock into common stock at a 1:1 ratio. Common stock provides the investor voting rights, but does not have any liquidation preference.

Preferred shares will automatically convert into common stock if the issuer completes an initial public offering (IPO), or if the holder of a majority of FlashSeed preferred shares agress to convert. An automatic conversion event results in the elimination of the Preferred Stock preferences.  


Flash CF Preferred Stock: (LifeBlink & SharkStopper)

Unlike it's predecessor, this preferred stock does not have optional conversion rights. Each share of Flash CF Preferred stock will automatically convert into common stock upon. 

(a) the closing of a firmly underwritten public offering of Common Stock

(b) the election or consent of the holders of a majority of the then outstanding shares of the Preferred Stock (voting together as a single class on an as-converted basis). The conversion rate will initially be 1:1, subject to customary adjustments. 


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