Both Sides of the Table

SEPTEMBER 18, 2014

You’ll find out the minimum when the next round is raised. Him: But when I raised my first round we didn’t know how to price the company. There were no metrics. How will you price the next round? Your A round? Him: On metrics. A down round? So a convertible note was easier.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 17, 2014

You’ll find out the minimum when the next round is raised. Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

SEPTEMBER 27, 2010

My wife worked at Google so while we had good income in Silicon Valley it’s hardly the life of luxury given the costs of housing. I discussed it in my post on the topic linked above. ** One small note: many VCs who got into the industry in 2001 or later have never seen a “carry&# check. &# I was a founder once.

Silicon Valley 308

Silicon Valley Liquidity Event Seed Stage Finance 308