Set shadow in the Recapitalization Agreement

Aug 6th, 2022
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  2. Add a Recapitalization Agreement that needs editing, or create it from scratch.
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  4. Pick the tool from the top toolbar to set shadow in Recapitalization Agreement and apply it.
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How to set shadow in the Recapitalization Agreement

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[Music] all right so im inside canva here im just going to do a quick demonstration on how to add a drop shadow to any image so if we get our well just do a background so ive just got a basic 2000 by 2000 im just going to add a background like that were going to photos pick anything uh ive used that one there thats good one that i used earlier so im just gonna get the photo go to effects remove the background okay and then once youve removed the background you can make it however big you want to do it and then basically were just going to duplicate it so were going to click on it were going to duplicate it im going to make the second one a little bit bigger and were going to go effects again and this where it says due tone duotone were going to go to the last second or last one which is mono click on that and then were going to go filter im sorry adjust blur im going to add some blur to it and then make it darker so just reduce the brightness a bit now you just want

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Shadow preferred stock is a series of preferred stock thats created when a SAFE or convertible note is converted into equity at the priced round that is a qualified financing.
A liquidation preference is a clause in a contract that dictates the payout order in case of a corporate liquidation. Typically, the companys investors or preferred stockholders get their money back first, ahead of other kinds of stockholders or debtholders, in the event that the company must be liquidated.
Liquidation Amount This is the amount of money the investor in preferred stock has a right to receive before the common stock shareholders receive anything. The dollar amount is defined in the term sheet. It often starts with the investment amount plus accrued, but unpaid dividends.
A shadow series of preferred stock is a series of preferred stock issued by a startup company that is identical in always to the series that it shadows except for the amount that the holders of such shadow series are paid in connection with dividends and their liquidation preference.
An investor with a 2x liquidation preference gets paid back double their original investment amount before any shareholders lower in the preference stack receive anything.
For example, if an investor invests $100,000 in seed capital in exchange for a promissory note for $100,000, and this note converts at a 20% discount, then when the issuing company issues preferred stock in its next round of financing at $1.00, the note will convert at a price of $0.80 per share.

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