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. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. Back then VentureHacks didn’t exist.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

SEPTEMBER 28, 2014

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. So a large part of your personal assessment on how much you can afford to burn also has to be your current valuation.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

SEPTEMBER 25, 2010

On this assertion, for the reasons that Paul articulates in his post, I’m aligned. Not that they’re “such a bad idea&# but more that there are inherent problems for entrepreneurs in the process of raising angel money that need to be addressed. Here’s where I feel common ground : 1.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Both Sides of the Table

NOVEMBER 4, 2009

I often have career discussions with entrepreneurs – both young and more mature – whether they should join company “X&# or not. Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

The Startup Lawyer

OCTOBER 9, 2010

Good luck trying to convince even the most nascent of startups to take your investment at around a $100k post-money valuation. b) Office space is a nice kicker, but no entrepreneur is going to give up equity in their mobile app startup company for office space. c) Mentorship is key.

Dallas 91

Dallas Seed Capital Incubator Post-Money Valuation 91

Feld Thoughts

FEBRUARY 9, 2016

And, rather than rational and helpful thoughts for entrepreneurs, it often brings out the schadenfreude in even the most talented people. Mark’s post is one of the first in this cycle that I’ve seen from a VC giving clear, actionable advice. We entrepreneurs have been spinning that line for decades in every boom cycle.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70