What does it mean to take equity and get a board seat?
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2
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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
New contributor
add a comment |
up vote
2
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
New contributor
10
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
9 hours ago
add a comment |
up vote
2
down vote
favorite
up vote
2
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
New contributor
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
New contributor
New contributor
edited 29 mins ago
muru
1196
1196
New contributor
asked 9 hours ago
Phaser
132
132
New contributor
New contributor
10
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
9 hours ago
add a comment |
10
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
9 hours ago
10
10
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
9 hours ago
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
9 hours ago
add a comment |
2 Answers
2
active
oldest
votes
up vote
4
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.
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
8 hours ago
@Phaser Yes, that’s correct.
– Mike Scott
8 hours ago
add a comment |
up vote
3
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.
add a comment |
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
4
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.
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
8 hours ago
@Phaser Yes, that’s correct.
– Mike Scott
8 hours ago
add a comment |
up vote
4
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.
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
8 hours ago
@Phaser Yes, that’s correct.
– Mike Scott
8 hours ago
add a comment |
up vote
4
down vote
accepted
up vote
4
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.
“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 9 hours ago
Mike Scott
13.1k3647
13.1k3647
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
8 hours ago
@Phaser Yes, that’s correct.
– Mike Scott
8 hours ago
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
8 hours ago
@Phaser Yes, that’s correct.
– Mike Scott
8 hours ago
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
8 hours ago
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
8 hours ago
@Phaser Yes, that’s correct.
– Mike Scott
8 hours ago
@Phaser Yes, that’s correct.
– Mike Scott
8 hours ago
add a comment |
up vote
3
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.
add a comment |
up vote
3
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.
add a comment |
up vote
3
down vote
up vote
3
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.
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 9 hours ago
mhoran_psprep
64.7k888167
64.7k888167
add a comment |
add a comment |
Phaser is a new contributor. Be nice, and check out our Code of Conduct.
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10
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
9 hours ago