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Advanced Subscription Agreement

An Advanced Subscription Agreement (ASA) is an agreement between an investor and a company that provides rights to the investor for future equity in the company. Typically, shares will be allocated to those investors at a discount to the share price in the next funding round, as a reward for taking on more risk and investing early. Compared to a CLN, an ASA is purely an equity agreement and can be repaid in cash. That said, in most instances, this is merely a theoretical difference and both should be thought of as equity investments. View a sample ASA here.”

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Short Priced Round

Priced rounds are equity investments based on a negotiated valuation of a company. After an investor and a company have agreed on a valuation, the investor exchanges money for shares at a price per share determined by the set valuation. Priced round document coming soon...”