Case 3.4: Walnut Venture Associates (D): RBS Deal Terms

Questions

1. What are the stock vesting provisions in the venture capital deal? What do these terms do to the stock that O’Connor already owns?

2. Who will control the company if the deal goes through as presented?

3. How do the convertible preferred shares work?

4. How does the proposed deal impact the potential risks and rewards of the existing investors?