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Jetoptera

Propulsion systems and Vertical and Short Takeoff and Landing Aircraft

$150,751

Raised from 443 investors

Min: $25,000

Max: $1,070,000

Security Offered

Convertible Note

Minimum Investment: $100

  • Building a robust intellectual property portfolio with multiple granted patents, as well as numerous patent applications globally

  • Partnerships with the U.S. Navy and General Electric (GE) Aviation

  • Finalists in the AUVSI Xponential Startup Showdown in May 2018and the Starburst Accelerator at Google Wing in December 2018

  • Featured in the Dubai Airshow in November 2019ii

Executive Snapshot

Seattle-based Jetoptera is a startup that is aiming to be the aerial mobility company of the future. To accomplish this goal, the company is relying on its unique fluidic propulsive system integrated with a novel airframe which was engineered to facilitate a faster, simpler, quieter, and more compact aircraft capable of vertical and short takeoff and landing. Founded in 2015, Jetoptera has achieved numerous milestones since inception, including:

  • Building a robust intellectual property portfolio with multiple granted patents, as well as numerous patent applications globally
  • Partnerships with the U.S. Navy and General Electric (GE) Aviation
  • Finalists in the AUVSI Xponential Startup Showdown in May 2018iii and the Starburst Accelerator at Google Wing in December 2018
  • Featured in the Dubai Airshow in November 2019iv

Terms

Investment Terms

Security Type: Crowd Note 

Round Size: Min: $25,000 Max: $1,070,000

Discount Rate: 20%

Valuation Cap: $22 million or $24 million 

Conversion Provisions: In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price per share paid on a $24 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Transaction Type: Primary

Perks

Investors that purchase the first 50,000 Crowd Notes, and thereby fund the first $50,000, will receive Crowd Notes with a conversion provision based on a $22 million valuation cap instead of a $24 million valuation cap. That means, in connection with equity financing of at least $1 million, the company has the option to convert the Crowd Note into non-voting preferred shares (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per share paid for Preferred Shares by investors in the Qualified Equity Financing or (B) the price per share based on a $22 million valuation cap (instead of $24 million).

Overview

Opportunity

The aviation industry is a multi-hundred-billion-dollar industryv with many companies developing new technologies and aircraft to help move people, cargo, and perform other functions more efficiently.vi Legacy technologies and aircrafts tend to be viewed as inefficient, large, loud, and don’t cater to the emergent desire to be runway independent,vii as well as being expensive.viii  Helicopters, for example, are loud, slow, and have a large footprint. The extent of such challenges isn’t limited to commercial environments, but military organizations as well.ix Defense agencies rely on aircraft to perform transport, intelligence, surveillance and reconnaissance, strike operations, communications, and earth observation, among other functions.x  

Jetoptera designs propulsion systems, unmanned autonomous vehicles, and flying cars for military and commercial markets. Potential applications for the company’s product include military, emergency situations like search and rescue or relief and humanitarian supply efforts, inspections, mapping, logistics, general aviation, and urban air mobility. The company has developed a unique propulsion system and novel airframe to create an aircraft that is efficient, light, and less complex and capable of vertical and short takeoff and landing. Jetoptera was founded in 2015 by an experienced team of Andrei Evulet, Denis Dancanet, and Simina Farcasiu. The founders have significant experience in aerospace, Wall Street, and startup environments. This experienced team has helped Jetoptera already gain support within the U.S. Navy and General Electric, as it looks to become a leader in aerial mobility.  

Press

Product and Product Roadmap

Jetoptera’s innovation is the Fluidic Propulsive System (FPS), a unique propulsion system engineered for vertical and short takeoff and landing applications. Additionally, the company has developed a novel integration of propulsion and airframe for a more compact, faster, and more efficient aircraft. Jetoptera’s inventions have been demonstrated in static, wind tunnel, and flight tests. The FPS needs a source of compressed air, which is then passed through thrusters. The company’s technology allows this thrust to be augmented, by entraining massive amounts of ambient air. The shape of the airframe and its integration with the propulsion allows for the entrained air to hit lift-generating surfaces, resulting in lift augmentation. The thrusters can be given non-round shapes, which allows them to conform to wings, to facilitate an increase in lift coefficient and better short takeoff performance.

Fluidic Propulsive System VTOL configuration

Fluidic Propulsive System STOL configuration

The company notes the following advantages of fluidic propulsion:

  • Faster Speeds: Can reach over 400 mph on select aircrafts
  • Low Noise: Jetoptera aircrafts are quiet due to the reduced exhaust speed of its fluidic propulsion. At 400 feet above the ground, Jetoptera expects its products to be ~70 decibels.
  • Compact: Due to the integrated airframe and lift augmentation, the company’s products occupy a much smaller physical footprint than other aircrafts, like helicopters.
  • Efficient: Due to the thrust augmentation of its fluidic propulsion and the use of a single system for both vertical and forward flight, Jetoptera is designed to reach higher levels of efficiency.
  • Simple: By eliminating propellers and fans and using thrusters with no moving parts on the outside of the aircraft, Jetoptera’s solution is designed to be simpler and more inexpensive to acquire and operate.
  • Flexible: Jetoptera’s technology is agnostic to the source of compressed air, being able to use a gas turbine, a hybrid system, or a pure electric system paired with an electric compressor. This makes fluidic propulsion relevant both now and in the future.

Jetoptera is designing a range of fluidic propulsive systems, unmanned, and manned aircrafts with both vertical and short-takeoff and landing capabilities. Here is brief description of each category:

  • Fluidic Propulsive Systems (FPS): The FPS design is scalable and can pair increasingly larger sources of compressed air and thrusters. The company is developing a suite of FPS ranging from 200 pounds of force to beyond 4,000 pounds of force.
  • Vertical Takeoff and Landing (VTOL): A VTOL aircraft is one that can take off, land, and hover vertically. Unlike conventional airplanes, which accumulate speed on the ground before launching in the air, VTOL aircraft can become airborne without this mechanism.
  • Short Takeoff and Landing (STOL): A STOL aircraft has short runway requirements for takeoff and landing before they are able to become airborne. Partly due to their shorter requirements to gain speed on the ground, STOL aircrafts can be used on unimproved runways.

In addition to its fluidic propulsive system and FPS-equipped aircraft, the company offers one jet-turbine equipped aircraft, the J-55. This STOL aircraft is smaller than Jetoptera’s future offerings (it weights under 55 lbs) and has reached 250 mph in flight tests. This product has served as a good proof of concept for Jetoptera, as well as potential future partners. It is the subject of the company’s cooperative research and development agreement with the US Navy.

The table below shows Jetoptera’s expected future FPS lineup. Because the FPS is scalable, one can match it with turbo-compressors of different sizes. The resulting thrust is magnified by the thrust augmentation of the FPS. For VTOL applications, one needs enough thrust to lift the entire weight of the aircraft and some extra 10% to generate upward momentum and account for conditions (altitude, climate, etc.). For STOL applications, one needs to match only a fraction of the entire weight of the aircraft, as it will generate some lift before takeoff. The thrust is a range because it varies with FPS options and aircraft mission. Maximum thrust is achieved on takeoff, in static conditions. One can use multiple compressors in one aircraft in order to generate extra power or to provide redundancy. For example, the J-4000 could be powered by a single FPS-5000 sized system or two FPS-3000 sized compressors.

Estimates for weights are based on existing similar turboshaft engines adapted to become turbo-compressors and FPS designs matching the respective power.  For example, a 2000 kW helicopter engine such as the GE YT706-GE-700 produces 2000 kW and weighs under 550 lbs (CT7-8 dry weight is 540 lbs).xi

Jetoptera’s anticipated future VTOL products include:

J-220

Payload: 25-50 lbs

Range: 100-150 mi

Speed: 200 mph

Target Release Date: 2020

J-500 and J-1000

Payload: 100-220 lbs

Range: 150-200 mi

Speed: 200 mph

Target Release Date: 2021

J-2000 and J-4000

Payload: 450-800 lbs

Range: 200 mi

Speed: 200 mph

Target Release Date: 2023

High Speed Concept

Payload: 450-800 lbs

Range: 400 mi

Speed: 400 mph

Target Release Date: 2024

Jetoptera’s expected STOL aircrafts include:

J-800

Payload: 200 lbs

Range: 500 mi

Speed: 120 mph

Target Release Date: 2021

J-3000

Payload: 1,100 lbs

Range: 1,100 mi

Speed: 135 mph

Target Release Date: 2022

J-9000

Payload: 2,000 lbs

Range: 1,200 mi

Speed: 145 mph

Target Release Date: 2023

Intellectual Property

Jetoptera is investing in building out a robust intellectual property portfolio both domestically and internationally. In the U.S., the company has three granted utility patents (U.S. 10,207,812, 10,464,668, 10,501,197), several utility patents for which a notice of allowance has been received, three granted design patents (D 856,898, 856,899, 868,627), as well as numerous applications. The company also has several utility and design patents that are currently unpublished. Internationally, the company has dozens of applications and multiple granted design patents. The company is aiming to develop a patent portfolio that is tailored to cover all key aspects of its products and technology. 

Use of Proceeds

Minimum Raised

If the minimum amount is raised ($25,000), Jetoptera intends to allocate half the proceeds towards general marketing and the remaining half towards legal expenses.

Maximum Raise

If the maximum amount is raised ($1.07 million), Jetoptera intends to allocate about 46% towards research and development. Future wages (~23%), legal expenses (~23%), and marketing (~6%) are the remaining functions the company is projecting to direct the proceeds of the raise toward. Jetoptera has discretion to alter the use of proceeds from this raise.

The company anticipates allocating funds towards the following functions within each category:

  • General Marketing: The company intends to use some of the capital of this raise towards marketing costs for digital advertisements, trade shows, and other outlets to increase awareness around the company’s technology.
  • Legal Expenses: Jetoptera plans to allocate a portion of this raise towards legal fees related to the company’s plans to expand its intellectual property portfolio, both domestically and internationally.
  • Research and Development: The company plans to use funds from this raise towards the continued development of their aircraft, as well as any potential expansion for new product offerings.
  • Future Wages: To continue to build out the company’s organization, Jetoptera intends to allocate a portion of this raise towards future wages so it can hire new employees.

Business Model

Jetoptera is currently pre-revenue, however, the company expects to generate future revenue through multiple channels.

  • Military Contracts: Jetoptera hopes to win multiple government contracts for the provision and further development of fluidic propulsion technology in 2020 for VTOL and STOL aircraft.
  • Licensing: The company anticipates licensing its unique propulsion system and lift enhancement technology to companies in the defense aerospace and general aviation sectors that are looking to benefit from the advantages of fluidic propulsion. Jetoptera has NDAs in place with several such companies and is planning to begin licensing this technology in 2020.
  • Business-to-Business (B2B) Sales: If the marketplace demands it, for organizations that are looking to do more than license Jetoptera’s technology, the company plans to sell its VTOL and STOL aircraft directly. Initially, Jetoptera is targeting the military, but has plans to expand to other industries as well such as agriculture, first responder organizations, logistics, and emergency relief, among other areas. The company forecasts beginning these sales in 2020.
  • Business-to-Consumer Sales: Eventually, Jetoptera aims to sell aircraft commercially after gathering additional flight and performance data and as regulations become more defined. The company estimates selling its aircraft commercially in 2023.

User Traction

To date, Jetoptera has entered into two significant partnerships with the U.S. Navy and General Electric (GE) Aviation that are testing the company’s product. Details about each partnership are as follows:

GE Aviation

Jetoptera is building a pilot test that incorporates its fluidic propulsion solution on a modified General Electric engine. The test is planned to happen in 2020 and will be in the Czech Republic (where GE Aviation’s turboprop engines are built).

U.S. Navy

Jetoptera has a cooperative research and development agreement (CRADA) with the U.S. Navy to fly payloads for the organization.

Jetoptera has also been featured in trade shows and industry events globally. In May 2018, the company was one of five finalists for the AUVSI Xponential Startup Showdown.xii In December 2018, the company was one of ten finalists chosen to present at the Starburst Accelerator Selection Committee at Google Wing. Most recently, the company was featured at the Dubai Airshow in November 2019.xiii

Historical Financials

Jetoptera has generated no revenue to date, as it has predominately focused on product development, intellectual property portfolio development, and establishing pilot partnerships. The company hopes to begin generating revenue in 2020 via government contract awards, licensing of its propulsion system and airframe, and aircraft sales to military organizations.

In 2019, Jetoptera has incurred about $1.92 million in expenses, up 39% compared to 2018. Expenses dipped slightly in Q3 2019 due to lower spending on prototype and equipment expenses relative to the other quarters. In 2018, the company incurred nearly $1.6 million in expenses, with expenses significantly dropping in Q4 2018 because of lower legal fees related to patent filings and protection. In 2017, Jetoptera incurred about $1.11 million in expenses, down from about $1.28 million in 2016. The company sustained nearly $300,000 in expenses in 2015, its first year of operation. 

In 2019, expenses have mainly gone towards professional services, which includes legal and accounting fees, website development, and any other outsourced professional services. Equipment has accounted for about 22% of total expenses in 2019, with expenses in this category including production and equipment related to prototyping. The remaining expenses were allocated toward wages for the employees, research and development for Jetoptera’s aircrafts, advertising, office rent, and general and administrative expenses towards running the business.

The full breakdown for expenses in 2019 is as follows:

The full breakdown for expenses in 2018 is as follows:

The full breakdown for expenses in 2017 is as follows:

In 2019, Jetoptera has incurred a net operating loss of about $1.92 million compared to nearly $1.6 million in 2018. In 2017, the company experienced a net loss of $1.11 million, an improvement from a net loss of $1.27 million in 2016. In its first year of operation, the company incurred a net loss of about $297,000. In 2019, the company’s gross average monthly burn rate was about $160,000, compared about $132,000 in 2018. As of February, the company had about $391,000 in cash assets, with the founders and executive team committed to supporting the company throughout the duration of the Offering.

Industry

The general aviation industry includes over 446,000 aircraft flying worldwide, with over 211,000 of these aircraft based in the U.S. These aircraft range from two-seat training aircraft and utility helicopters, to business jets. The aviation industry supports $219 billion in total economic output and over one million total jobs in the U.S.xiv

Drones – broadly defined as any kind of unmanned aerial vehicle – is one segment of aviation that has grown in demand by stakeholders in various industries. Goldman Sachs projects a $100 billion market opportunity for drones in 2020. The military is the largest section of this market, with projections reaching $70 billion by 2020. Drones have already gained acceptance within the defense industry in part because they are safer, cheaper, and often more capable alternatives to manned aircraft. Military personnel work with drones of many sizes from small quadcopters that can be as small as 6.5 inches in size, to large jet-sized aircraft. The next generation of military drones are expected to have even greater stealth, sensory, payload, range, autonomous, and communications capabilities.xv  

The next largest market is the consumer drone market, which is forecast to reach $17 billion by 2020. The consumer market was the first segment to develop outside the military industry. The fastest growing segment of the drone industry is the commercial and civil segment, which Goldman Sachs projects to reach $13 billion by 2020. Drones are able to serve many functions within this market segment including agriculture, first responders, climate data, construction, and border management.xvi  

Urban air mobility is another segment of the aviation industry that has gained attention from technology companies like Uber.xvii Morgan Stanley Research believes there are many different use cases for urban air flight including logistics, package delivery, personal travel, and more. Technology is not projected to be a limitation for the industry, but rather regulatory and societal concerns surrounding urban air mobility. Understandably, addressing safety will be at the forefront of regulators’ list.xviii  

Accessing adequate health care can be a challenge for people living in rural areas, but the development of drone technology has the potential to improve care. Rural areas often have fewer specialists, hospitals, and other providers, requiring people to drive long distances to receive the care they require. This can have a significant impact on elderly citizens who no longer drive and lack access to alternative forms of transportation. According to research conducted at Texas A&M University, drones could help solve this problem by offering access to important services that do not require face-to-face interaction. In the same research paper, testing showed that using drones could provide cost and time savings for patients, and improved care delivery for providers.xix  

Aircraft that operate within these markets can be identified by many identifying characteristics. One such characteristic that classifies many aircraft is their takeoff capabilities. Vertical Takeoff and Landing (VTOL) aircraft are vehicles that can take off, land, and hover vertically. Unlike airplanes, which accumulate speed on the ground before launching in the air, VTOL aircrafts can become aerial without this mechanism. Short Takeoff and Landing (STOL) aircraft have short runway requirements for takeoff and landing before they are able to become airborne. Partly due to their shorter requirements to gain speed on the ground, STOL aircraft can be used on unimproved runways.

Highlights from venture financings in aviation companies from 2009-2019 include:xx

  • Capital invested peaked in 2018, with nearly $1.6 billion invested, a 32% year-over-year increase
  • Capital invested surpassed $1 billion for the first time in 2017, when investment reached $1.2 billion Capital invested was a 411% increase from 2016
  • Deal count peaked in 2017, with 93 total deals
  • From 2009 to 2019, there has been over $5.5 billion invested in aviation companies across 608 total deals

Source: PItchBook Data, Inc.

Source: PItchBook Data, Inc.

Competitors

Given Jetoptera’s technology and business model, there are several areas in which to consider the competition: propulsion, unmanned, and manned aircraft. In the area of propulsion, the Company’s primary competitors are electric and hybrid electric approaches using batteries, electric motors and many propellers. In the area of unmanned aircraft, the Company’s competitors include defense aerospace companies, such as Kratos. In the area of manned aircraft, among the Company’s competitors are eVTOL companies such as Volocopter, Lilium, and Kittyhawk.

Volocopter

Volocopter is a German company that is developing electric takeoff and landing aircrafts for urban environments. The company is focused on commercial applications of it technology, which has been trialed and iterated upon since the company’s founding in 2011. In 2019, Volocopter announced a partnership with the city of Singapore, in which Volocopter would develop a prototype air taxi landing facility. To date, Volocopter has raised about $89 million, with the company raising a $55 million Series C in September 2019.xxi

Lilium

Founded in 2015, Lilium is an aerospace company that is focusing on developing urban electric vertical takeoff and landing aircrafts. The company’s mission is to make urban air mobility more accessible for the masses, with the Lilium Jet designed to connect not only urban and suburban areas, but cities to one another.  Lilium has raised over $100 million from Tencent, Atomico, and Obvious Ventures, among other firms. TechCrunch reported in October 2019 that the company had begun engaging investors to raise a larger round of financing, between $400 million and $500 million.xxii

Kitty Hawk

Kitty Hawk is a Mountain View-based startup that has developed the Heavyside and Flyer aircrafts for personal aviation. The Heaviside is the company’s latest product, which is designed to be fast, small, and quiet with Kitty Hawks estimating the aircraft can travel from San Jose to San Francisco in 15 minutes.xxiv The Flyer is powered by ten independent lift fans, can hold one person, and operates between three and ten feet off the water.xxv In December 2019, Forbes reported that the Larry Page-backed Kitty Hawk decided to not sell the Flyer to individuals and that it had returned deposits to buyers. Additionally, former employees claimed that the Flyer was having frequent breakdowns and fires.xxvi

Kratos Defense and Security Solutions (NASDAQ: KTOS)

San Diego-based Kratos designs and builds systems, platforms, and products for national security and communication. The company has numerous divisions, including the Kratos’ Unmanned Systems Division (KUSD) that includes the Kratos Unmanned Aerial Systems unit. Within this unit, the company is able to create tactical unmanned aerial vehicles for U.S. Defense Organizations, including aircrafts like the X1-58A Valkyrie and the UTAP-22 Mako.xxvii In 2018, the company generated $618 million in revenue.xxviii

Team

Denis Dancanet

PhD, Founder and CEO

Denis is a private pilot with a lifelong interest in aviation which compelled him to start Jetoptera. Prior to founding the company, Denis had a career in quantitative finance. He was Partner at PDT Partners, a leading quantitative hedge fund, and Managing Director at Morgan Stanley. Denis has a PhD in Computer Science from Carnegie Mellon University in the area of theory of programming languages. He also triple majored in Computer Science, Mathematics, and Philosophy at the University of Pennsylvania.

Andrei Evulet

PhD, Co-Founder and CTO

Andrei has an extensive background in research and development, technology maturation, experimental proof of concept, and gas turbines in aerospace engineering. He spent nearly 15 years at General Electric (GE) working in various divisions. Andrei spent time in the technology groups at GE Global Research, GE Oil and Gas, and GE Aviation, where he was the Technology Integration Leader and Technology Maturation Leader for the GE9X engine. Andrei earned his PhD from Rutgers University in Mechanical and Aerospace Engineering, his Master of Science in Aerospace and Propulsion Systems Engineering from the Polytechnic Institute of Bucharest, and his Bachelor of Science in Engineering with Honors from Manchester University.

Simina Farcasiu

PhD, Co-Founder and CFO

Throughout her career, Simina has gained entrepreneurial experience in software, energy finance, and aerospace, with an extensive background in investment management, quantitative analytics, capital markets, and investment banking. Her early career was spent on Wall Street, at First Boston, Merrill Lynch and Bear Stearns. Simina earned her PhD from Westfield College and her BA from Princeton University.

Todd Newton

VP of Business Development

Todd joined Jetoptera in the summer of 2019, after over three years as the Director of Business Development for Collins Aerospace. During his career, he has held director level business development roles with Textron Systems, ITT Exelis, and General Dynamics Advanced Information Systems. Todd graduated from Oregon State University with degrees in Political Science and Government.

Past Financing

Jetoptera has predominately used prior capital towards professional services, equipment, wages, research and development, and general and administrative costs of running the business. During its most recent raise, Jetoptera issued convertible notes with a $24 million valuation cap, 20% discount rate, and 9% interest rate.

Discussion

Risks

Investment Risk

An investment in the company is speculative, and as such is not suitable for anyone without a high tolerance for risk and a low need for liquidity. You should invest only if you are able to bear the risk of losing your entire investment. There can be no assurance that that investors will receive any return of capital or profit. Investors should have the financial ability and willingness to accept the risks (including, among other things, the risk of loss of their entire investment and the risks of lack of liquidity) that are characteristic of private placement investments. There will be no public market for the securities being offered, applicable securities laws will restrict any transfer of the securities, and the securities will not be transferable without the company’s consent.

The information provided herein is not intended to be, nor should it be construed or used as, investment, tax or legal advice, a recommendation to purchase, or an offer to sell securities of the company. You should rely on the offering statement and documents attached as exhibits to the offering statement when making any investment decision. An investment in the company is not suitable for all investors.

Company Risk

The company’s industry is highly competitive, and the company may not be able to compete effectively against the other businesses in its industry. The company is subject to a number of significant risks that could result in a reduction in its value and the value of the company securities, potentially including, but not limited to:

  • Rapidly changing consumer preferences and market trends,
  • Inability to expand and maintain market acceptance for the company’s services and products,
  • Inability to gain access to international markets and comply with all applicable local laws and regulations,
  • Inability to achieve management’s projections for growth, to maintain or increase historical rates of growth, to achieve growth based on past or current trends, or to effectively manage rapid growth,
  • Inability to develop, maintain and expand successful marketing relationships, affiliations, joint ventures and partnerships that may be needed to continue and accelerate the company’s growth and market penetration,
  • Inability to keep pace with rapid industry, technological and market changes that could affect the company’s services, products and business,
  • Technological problems, including potentially widespread outages and disruptions in Internet and mobile commerce,
  • Potential costs and business disruption that may result if the company’s customers complain or assert claims regarding the company’s technology,
  • Failure to adequately address data security and privacy concerns in compliance with U.S. and international laws, rules and policies,
  • Performance issues arising from infrastructure changes, human or software errors, website or third-party hosting disruptions, network disruptions or capacity constraints due to a number of potential causes including technical failures, cyber-attacks, security vulnerabilities, natural disasters or fraud,
  • Inability to adequately secure and protect intellectual property rights,
  • Potential claims and litigation against the company for infringement of intellectual property rights and other alleged violations of law,
  • Difficulties in complying with applicable laws and regulations, and potential costs and business disruption if the company becomes subject to claims and litigation for legal non-compliance,
  • Changes in laws and regulations materially affecting the company’s business,
  • Liability risks and labor costs and requirements that may jeopardize the company’s business,
  • Dependence on and inability to hire or retain key members of management and a qualified workforce,
  • Ongoing need for substantial additional capital to support operations, to finance expansion and/or to maintain competitive position,
  • Issuance of additional company equity securities at prices dilutive to existing equity holders,
  • Potential significant and unexpected declines in the value of company equity securities, including prior to, during, and after an initial public offering, and
  • Inability of the company to complete an initial public offering of its securities, merger, buyout or other liquidity event.

Endnotes