David Teten
NOVEMBER 15, 2013
Asset managers can earn far more money at less risk than in any other industry. Simon Lack reports in The Hedge Fund Mirage that from 1998 to 2010, hedge fund managers earned $379 billion in fees, while their investors earned only $70 billion in investing gains. Would you pay a $379 tip for a $70 meal?
www.paulgraham.com
OCTOBER 23, 2010
If you give an investor new shares equal to 5% ofthose already outstanding in return for $100,000, then youve donethe deal at a pre-money valuation of $2 million. At this stage the company is just a bet. Ididnt realize that when we were raising money. Back in 1998 our CFOtried to talk me into it.
www.paulgraham.com
APRIL 28, 2010
When we sold our startup in 1998 I thought one day Id do some angelinvesting. 2 ] When you negotiate terms with a startup, there are two numbers youcare about: how much money youre putting in, and the valuation ofthe company. The valuation determines how much stock you get. Suppose its 1998. million, and youget.05/1.05,
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