Both Sides of the Table

JULY 22, 2010

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. The VC’s $1 million still buys them 25% of your company – it’s you who has diluted to 60% ownership rather than 75%. So your 100% of the company is down to 80% even before VC funding.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

FEBRUARY 22, 2011

You may feel as I did in 1999 that the more smart people around the table the more intros you’ll have, the more sage advice you’ll receive and the more impressive you’ll seem to outsiders. So in order to get a two-handed deal you need to dilute by 40% which is an awful lot at the start of your company.

Dilution 314

Dilution Cap Table Due Diligence Option Pool 314

abovethecrowd.com

APRIL 20, 2016

In 1999, record valuations coexisted with record IPOs and shareholder liquidity. If 1999 was a wet (read liquid) bubble, 2015 was a particularly dry one. Never in the history of venture capital have early stage startups had access to so much capital. It will also minimize future dilution. ” Go public.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Ben's Blog

MAY 24, 2021

Second, by better matching supply and demand, direct listings have generally mitigated the magnitude of IPO Pops, thus engendering better overall price discovery. Thus, while the results are still early, we do seem to see better price discovery and reduced after-market volatility from the direct listing process. 1999-2000 51.6%

SEC 36

SEC Accredited Investor IPO Technical Review 36