What does it mean to take equity and get a board seat?
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 '18 at 4:52
muru
1
asked Dec 11 '18 at 20:03
Phaser
283
add a comment |
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 '18 at 4:52
muru
1
asked Dec 11 '18 at 20:03
Phaser
283
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 '18 at 20:10
add a comment |
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 '18 at 4:52
muru
1
asked Dec 11 '18 at 20:03
Phaser
283
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 '18 at 4:52
muru
1
asked Dec 11 '18 at 20:03
Phaser
283
edited Dec 12 '18 at 4:52
muru
1
asked Dec 11 '18 at 20:03
Phaser
283
edited Dec 12 '18 at 4:52
muru
1
edited Dec 12 '18 at 4:52
muru
1
edited Dec 12 '18 at 4:52
muru
1
1
asked Dec 11 '18 at 20:03
Phaser
283
asked Dec 11 '18 at 20:03
Phaser
283
asked Dec 11 '18 at 20:03
Phaser
283
283
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 '18 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 '18 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 '18 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 '18 at 20:10
add a comment |
2 Answers
2
active
oldest
votes
“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 '18 at 20:13
Mike Scott
13.3k3748
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 '18 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 '18 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 '18 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 '18 at 10:13
add a comment |
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 '18 at 20:11
mhoran_psprep
66.2k893170
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
“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 '18 at 20:13
Mike Scott
13.3k3748
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 '18 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 '18 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 '18 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 '18 at 10:13
add a comment |
“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 '18 at 20:13
Mike Scott
13.3k3748
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 '18 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 '18 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 '18 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 '18 at 10:13
add a comment |
“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 '18 at 20:13
Mike Scott
13.3k3748
“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 '18 at 20:13
Mike Scott
13.3k3748
answered Dec 11 '18 at 20:13
Mike Scott
13.3k3748
answered Dec 11 '18 at 20:13
Mike Scott
13.3k3748
answered Dec 11 '18 at 20:13
Mike Scott
13.3k3748
13.3k3748
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 '18 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 '18 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 '18 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 '18 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 '18 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 '18 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 '18 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 '18 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 '18 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 '18 at 21:06
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 '18 at 21:10
@Phaser Yes, that’s correct.
– Mike Scott
Dec 11 '18 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 '18 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 '18 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 '18 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 '18 at 10:13
add a comment |
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 '18 at 20:11
mhoran_psprep
66.2k893170
add a comment |
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 '18 at 20:11
mhoran_psprep
66.2k893170
add a comment |
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 '18 at 20:11
mhoran_psprep
66.2k893170
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 '18 at 20:11
mhoran_psprep
66.2k893170
answered Dec 11 '18 at 20:11
mhoran_psprep
66.2k893170
answered Dec 11 '18 at 20:11
mhoran_psprep
66.2k893170
answered Dec 11 '18 at 20:11
mhoran_psprep
66.2k893170
66.2k893170
add a comment |
add a comment |
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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 '18 at 20:10