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

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

Professor VC

DECEMBER 8, 2015

Musk was the early winner taking the CEO role (for a brief period) in the merged company and the largest equity stake as well. Not surprisingly, the merger was highly dilutive, particularly to Confinity/PayPal shareholders. 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