ithacaVC

SEPTEMBER 4, 2011

When I was General Counsel at a tech company during the 1999 bubble times, I kept the company’s Cap Table. This is significant because Jane and Dick took all the dilution from the option pool creation. That person is typically the inside finance person, but it does not really matter who so long is it is always current.

Cap Table 49

Cap Table Finance Option Pool Warrant 49

Both Sides of the Table

FEBRUARY 25, 2010

When I was raising money for my first company we had closed a seed round in 1999 and were working on our A round. We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Ben's Blog

JULY 16, 2013

3/31/1999: 49.7. If we took too much dilution, we will work with our new investor to make sure that every employee is still highly financially motivated. If markets behave rationally, one might expect the ratio of price to earnings to be reasonably stable over the period (click here for complete data set). 3/29/1996: 22.3.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Feld Thoughts

FEBRUARY 28, 2023

However, the lack of a conversion right also has implications for anti-dilution protection: in the U.S., In Germany, anti-dilution protection is achieved by issuing additional preferred shares. The boom years of 1998 (79 IPOs), 1999 (175 IPOs), and 2000 (142 IPOs) are long gone. Hence, the negation is exactly in reverse.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Both Sides of the Table

APRIL 27, 2010

I was paid less in salary in 2004 than I was paid at the job I quit in 1999 (a job I had held 8+ years). But the firm that funded my first startup was loyal to me for having stuck around in what they knew to be pretty tough times and having suffered much dilution. I learned how to better run a product management process.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Ben's Blog

JULY 16, 2013

3/31/1999: 49.7 If we took too much dilution, we will work with our new investor to make sure that every employee is still highly financially motivated. If markets behave rationally, one might expect the ratio of price to earnings to be reasonably stable over the period (click here for complete data set). 3/29/1996: 22.3

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

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. Back in 1999, if a company raised $30mm before an IPO, that was considered a large historic raise. It will also minimize future dilution. 2015 was the exact opposite.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

betashop.com

OCTOBER 8, 2012

I’ve been founding and helping run technology companies since 1999. A couple of dilution points here or there wont matter in the long run but working with the right people will. Don’t skimp on fundraising because of dilution fears. Fab.com Bradfords Blog Fab Feed. My latest company is fab.com. This is tricky.

Post-Money Valuation 92

Post-Money Valuation Valuation Dilution Advisory Board 92

Professor VC

DECEMBER 8, 2015

Not surprisingly, the merger was highly dilutive, particularly to Confinity/PayPal shareholders. As an investor, I wasn't very excited at the time due to the dilution and challenges in integrating the two platforms. I was a Limited Partner in Angel Investors II (Ron Conway's angel fund) that was an investor in Confinity.

Merger 28

Merger LP IPO Redemption 28

Ben's Blog

MAY 24, 2021

Among the findings are: SPAC dilution amounts to roughly 50% of the cash ultimately delivered to the companies brought public. In fact, if you exclude the Dot Com Bubble of 1999-2000, they have been steady for nearly thirty years. 1999-2000 51.6% Time Period IPO Pop % Above IFR 1999-2000 51.6% 1999-2000 37.5%

SEC 36

SEC Accredited Investor IPO Technical Review 36