article thumbnail

What every entrepreneur should know about financing right now

Version One Ventures

We have all heard about the Series A crunch in the Valley (there might actually be up to 2000 companies in the Series A pipeline right now), and perhaps there’s a Series B crunch now too. If not, revenue from your customers will be your best source of financing. Additionally, we need to watch out for two developments on the horizon.

Finance 167
article thumbnail

Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

In my first company I had to raise money in April 2001 or die. I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. Coupled with my participating preferred from 1999 and 2000 I had more than $55 million of liquidation preferences. Many term sheets ensued.

Founder 329