What does it mean to take equity and get a board seat?
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 yesterday
muru
1196
asked yesterday
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.
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 yesterday
muru
1196
asked yesterday
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
yesterday
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 yesterday
muru
1196
asked yesterday
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 yesterday
muru
1196
asked yesterday
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 yesterday
muru
1196
asked yesterday
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 yesterday
muru
1196
edited yesterday
muru
1196
edited yesterday
muru
1196
1196
asked yesterday
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 yesterday
Phaser
283
asked yesterday
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
yesterday
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
yesterday
22
22
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
yesterday
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
yesterday
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 yesterday
Mike Scott
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
yesterday
@Phaser Yes, that’s correct.
– Mike Scott
yesterday
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
23 hours ago
@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
21 hours ago
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 yesterday
mhoran_psprep
64.7k888167
add a comment |
Your Answer
StackExchange.ready(function() {
var channelOptions = {
tags: "".split(" "),
id: "93"
};
initTagRenderer("".split(" "), "".split(" "), channelOptions);
StackExchange.using("externalEditor", function() {
// Have to fire editor after snippets, if snippets enabled
if (StackExchange.settings.snippets.snippetsEnabled) {
StackExchange.using("snippets", function() {
createEditor();
});
}
else {
createEditor();
}
});
function createEditor() {
StackExchange.prepareEditor({
heartbeatType: 'answer',
convertImagesToLinks: true,
noModals: true,
showLowRepImageUploadWarning: true,
reputationToPostImages: 10,
bindNavPrevention: true,
postfix: "",
imageUploader: {
brandingHtml: "Powered by u003ca class="icon-imgur-white" href="https://imgur.com/"u003eu003c/au003e",
contentPolicyHtml: "User contributions licensed under u003ca href="https://creativecommons.org/licenses/by-sa/3.0/"u003ecc by-sa 3.0 with attribution requiredu003c/au003e u003ca href="https://stackoverflow.com/legal/content-policy"u003e(content policy)u003c/au003e",
allowUrls: true
},
noCode: true, onDemand: true,
discardSelector: ".discard-answer"
,immediatelyShowMarkdownHelp:true
});
}
});
Phaser is a new contributor. Be nice, and check out our Code of Conduct.
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function () {
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f102840%2fwhat-does-it-mean-to-take-equity-and-get-a-board-seat%23new-answer', 'question_page');
}
);
Post as a guest
Required, but never shown
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 yesterday
Mike Scott
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
yesterday
@Phaser Yes, that’s correct.
– Mike Scott
yesterday
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
23 hours ago
@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
21 hours ago
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 yesterday
Mike Scott
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
yesterday
@Phaser Yes, that’s correct.
– Mike Scott
yesterday
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
23 hours ago
@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
21 hours ago
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 yesterday
Mike Scott
13.1k3647
“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 yesterday
Mike Scott
13.1k3647
answered yesterday
Mike Scott
13.1k3647
answered yesterday
Mike Scott
13.1k3647
answered yesterday
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
yesterday
@Phaser Yes, that’s correct.
– Mike Scott
yesterday
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
23 hours ago
@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
21 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
yesterday
@Phaser Yes, that’s correct.
– Mike Scott
yesterday
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
23 hours ago
@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
21 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
yesterday
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
yesterday
@Phaser Yes, that’s correct.
– Mike Scott
yesterday
@Phaser Yes, that’s correct.
– Mike Scott
yesterday
1
1
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
23 hours ago
So in this instance, the "board of directors" is two people: one from Abu Dhabi Fin Group and one other.
– TripeHound
23 hours ago
@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
21 hours ago
@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
21 hours ago
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 yesterday
mhoran_psprep
64.7k888167
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 yesterday
mhoran_psprep
64.7k888167
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 yesterday
mhoran_psprep
64.7k888167
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 yesterday
mhoran_psprep
64.7k888167
answered yesterday
mhoran_psprep
64.7k888167
answered yesterday
mhoran_psprep
64.7k888167
answered yesterday
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.
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.
Phaser is a new contributor. Be nice, and check out our Code of Conduct.
Thanks for contributing an answer to Personal Finance & Money Stack Exchange!
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
To learn more, see our tips on writing great answers.
Some of your past answers have not been well-received, and you're in danger of being blocked from answering.
Please pay close attention to the following guidance:
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
To learn more, see our tips on writing great answers.
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function () {
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f102840%2fwhat-does-it-mean-to-take-equity-and-get-a-board-seat%23new-answer', 'question_page');
}
);
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
22
For anyone else who, like me, is confused at first, 500 Startups is the name of a venture capital firm.
– Ben Miller
yesterday