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. I told them that True Ventures had stuck to their brand name and submitted a totally clean term sheet. It was accept the terms or go into bankruptcy so we took the money. No gotchas.
www.inc.com
SEPTEMBER 24, 2011
Naming a Business. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. Besides the future potential earnings youre forgoing, youre also diluting your own ownership in the company. Tools & Research. Newsletters.
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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). We were all at each other’s weddings, brit milah / baby namings and unfortunately a funeral. My company had raised venture capital in April 2001 but we were told that there may never be any more coming. We were family.
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.
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.
Professor VC
DECEMBER 8, 2015
Not surprisingly, the merger was highly dilutive, particularly to Confinity/PayPal shareholders. Another seed investment where something similar happened was the 2010 iControl Networks merger with uControl (yeah not a lot of creativity in naming.). At the IPO, Musk held a 14.2% stake vs Thiel's 5.6% (Sequoia Capital had 10.7%).
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%
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