Both Sides of the Table

SEPTEMBER 28, 2014

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. ” I highly recommend reading it.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

SEPTEMBER 25, 2010

Having re-read it, I believe his real premise instead is, “Fixed-size, multi-investor angel rounds are such a bad idea for startups that one wonders why things were ever done that way.&#. On this assertion, for the reasons that Paul articulates in his post, I’m aligned. Maybe one day it won’t. rings true to me.

Finance 286

Finance Term Sheet Technical Review Warrant 286

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

NOVEMBER 4, 2009

This is part of my Startup Advice series. I often have career discussions with entrepreneurs – both young and more mature – whether they should join company “X&# or not. at a startup that has already raised $5 million the chances of you making your retirement money on that company is EXTREMELY small.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

The Startup Lawyer

OCTOBER 9, 2010

But this morning I read a Dallas Business Journal article that I found amusing: A new accelerator is planning to invest $200,000 and provide up to 45,000 square feet of office space to about 10 mobile app startups in exchange for 15-20% equity in each startup. (a) a) That’s $20,000 per startup for a 15%-20% equity stake.

Dallas 91

Dallas Seed Capital Incubator Post-Money Valuation 91

Feld Thoughts

FEBRUARY 9, 2016

Mark Suster wrote a great post yesterday titled The Resetting of the Startup Industry. And, rather than rational and helpful thoughts for entrepreneurs, it often brings out the schadenfreude in even the most talented people. We entrepreneurs have been spinning that line for decades in every boom cycle.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70