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. No hidden terms.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … 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.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 17, 2014

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. Objectively.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

FEBRUARY 25, 2010

We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. We ended up agreeing a term sheet for $16.5 I lived through this again September 2001.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

SEPTEMBER 2, 2009

A friend of mine is a serial entrepreneur and is running a high-profile, early stage company in NorCal. In my first company I had to raise money in April 2001 or die. Many term sheets ensued. I had that against the backdrop of several term sheets. I believe this is wrong. Two answers from me.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Professor VC

FEBRUARY 12, 2015

Those that managed companies in 2008 or thirteen years ago in 2001 know exactly how fear feels. The current valuation of $2B is 3,000X the proposed post-money valuation of that seed term sheet. Yes, I do believe that late stage valuations are out of whack but remain excited about early stage opportunities.

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28

Eric Friedman

AUGUST 18, 2021

He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. A second aspect of it is I knew I wanted to go do early stage financial services Venture Capital and I didn’t think there was an obvious way to do it within that context. Dan Kimerling: I love 2001: a Space Odyssey.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88