Event Financing - Legal Terms

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  1. Information Rights
  2. Major Investor
  3. Economic Rights
  4. QSBS
  5. Dividends

Legal documents form the foundation of Aumni by helping you track important legal terms. These terms define an investor's relationship and engagement with the investment.

To access Legal Terms,go to the Company Events section of your Company Page. You can view all Equity Financing events you have participated in listed In the Company Events section.

Click on a specific event and on the top right-hand of the screen, and click Legal Terms.

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Information Rights

These are the documents and information you, as an investor, are entitled to receive from a Portfolio Company. We also include the cadence (monthly, quarterly, or at year's end) in which you should receive them.

Major Investor

You may not be the major investor in a deal or an investor at all, but the event documents reveal if there are capital or share thresholds that have to be met to be a major investor and who those investors are.

Economic Rights

Anti Dilution Rights

Indicates whether the Anti Dilution formula uses a BroadBased, Full Ratchet, or Narrow Based weighted average.

Liquidation Preference

Classes of stock that are entitled to liquidation payments prior to other classes (esp. common stock) are listed first, then other classes are listed in subsequent seniority.
The description of the seniority or pari-passu liquidation positions of preferred classes of stock.

Milestone Closings

Milestone achievements are portfolio company operational or financial goals that potentially trigger additional investor financing obligations and rights. This section determines whether any initial or subsequent closings are subject to milestone achievements.


Qualified Small Business Stock (QSBS) is an income exclusion of the US tax code that can exclude from gross income more than 50% of the gain recognized on the sale or exchange of QSBS.

This section will state whether the Portfolio Company covenants to maintain QSBS status for its securities and also if it represents that its securities qualify as QSBS.


This section states whether or not dividends are paid. If so, you can see if they accrue from year to year or cumulatively, the seniority and the accrual rate.


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