Next Financing Clause Samples
The Next Financing clause defines how an investment or convertible instrument will convert or adjust in the event of the company's next qualified equity financing round. Typically, this clause specifies that the investor's note or SAFE will automatically convert into preferred shares at the same terms as the new investors, often with a discount or valuation cap to reward early risk. This mechanism ensures that early investors are fairly compensated and integrated into the company's capital structure during significant future fundraising, providing clarity and alignment between founders and investors.
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Next Financing. In the event that the Company issues securities in its next equity financing after the date hereof (the “Next Financing”) which have rights, preferences or privileges that are more favorable than the terms of the Series A Preferred Stock or Series B Preferred Stock, such as preemptive rights or registration rights, the Company shall provide equivalent rights to the Investor with respect to its shares of Series A Preferred Stock or Series B Preferred Stock, as appliable (in each case with appropriate adjustment for economic terms or other contractual rights), subject to Investors execution of any documents, including, if applicable, investors’ rights, co-sale, voting and other agreements, executed by the investors purchasing securities in the Next Financing (such documents referred to herein as the “Next Financing Documents”).
Next Financing. During the Initial Forebearance Period, the Company agrees to use its reasonable best efforts to raise a minimum of $1,000,000.00 through the sale of equity or equity linked securities (such as convertible debt) in the Company, the closing (the “Closing”) of which is expected to occur within 90 days of the date hereof (the “Next Financing”). The Company agrees that the exercise price of any warrants to be issued in connection with the Next Financing shall be not less than $0.06 per share of Common Stock.
Next Financing. If the Next Financing has occurred prior to June --------------- 30,1999, then this Warrant shall be exercisable for the number of shares of the type of Equity Securities issued in the Next Financing equal to (i) fifteen percent (15%) of the principal amount set forth opposite such Investor's name on Exhibit A to the Loan Agreement, divided by (ii) the Exercise Price. ---------
Next Financing. The term “Next Financing” shall mean the next equity financing transaction or series of related transactions involving aggregate gross proceeds to the Company of at least $4,000,000 (or any lesser amount if consented to in writing by the Company and the holders of a majority of the then outstanding principal amount of the Notes (as defined in the Agreement)) excluding amounts received pursuant to the conversion of any outstanding Notes.
Next Financing. “Next Financing” shall mean the first issuance following the date hereof by Purchaser of shares of a newly created series of Purchaser’s Preferred Stock in an equity financing of parties in an aggregate amount of not less than $5,000,000 (five million US dollars).
Next Financing. The Company agrees to sell to i2 at the Closing of the Next Financing, and i2 agrees to purchase from the Company at the Closing of the Next Financing, that number of Shares equal to the quotient obtained by dividing the Next Financing Proportional Amount by the price at which the Company sells shares of its Common Stock in the Next Financing, subject to Section 1.2(d).
Next Financing. In the event that the Company issues securities in its next equity financing after the date hereof (the “Next Financing”) which have rights, preferences or privileges that are more favorable than the terms of the Series A Preferred Stock, Series B Preferred Stock, Series C-1 Preferred Stock, or Series C-2 Preferred Stock, such as preemptive rights or registration rights, the Company shall provide equivalent rights to the Investor with respect to its shares of Series A Preferred Stock, Series B Preferred Stock, Series C-1 Preferred Stock, or Series C-2 Preferred Stock, as appliable (in each case with appropriate adjustment for economic terms or other contractual rights), subject to Investors execution of any documents, including, if applicable, investors’ rights, co-sale, voting and other agreements, executed by the investors purchasing securities in the Next Financing (such documents referred to herein as the “Next Financing Documents”).