Convertible Note Issue: VC demanding 2x liquidation preference

I publish illustrative scenarios prepared by my practice. All participants and conversations are fictional. The fictional posts are not posts by real users, accounts of client experiences, or reports of actual results.

Illustrative scenario prepared by my practice.

For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.

Hypothetical question

Has anyone dealt with something like this? I'm not sure what my options are.

VC demanding 2x liquidation preference. I've been dealing with this for about 4 weeks now and the situation isn't improving.

I have already consulted briefly with a lawyer but got conflicting advice.

Am I overthinking this or is this a real legal issue worth pursuing?

Illustrative response

Quick tip on registered agents: don't use your home address. It becomes public record and you'll get junk mail forever. A registered agent service costs $50-150/year and keeps your address private.

Convertible Note Issue: VC demanding 2x liquidation preference

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