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

View from Seed

JANUARY 11, 2017

I was an early employee at PayPal and back in the 2000-2001 timeframe, and we ended up taking a fairly significant amount of strategic investment (tens of millions of $) from various banks in the US, Europe, and Asia. We recently led a large seed round for an autonomous vehicle company called Optimus Ride.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Ben's Blog

JULY 16, 2013

3/30/2001: 26.3. In June of 2000, I raised money at an $820M post-money valuation. By the end of the year and despite more than doubling bookings, I could not raise money at any price in the private markets and was forced to take the company public at a $560M post-money valuation.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

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. You’ll find out the minimum when the next round is raised. Me: I know.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Ben's Blog

JULY 16, 2013

3/30/2001: 26.3 In June of 2000, I raised money at an $820M post-money valuation. By the end of the year and despite more than doubling bookings, I could not raise money at any price in the private markets and was forced to take the company public at a $560M post-money valuation.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Professor VC

FEBRUARY 12, 2015

Those that managed companies in 2008 or thirteen years ago in 2001 know exactly how fear feels. I was an informal advisor to the founders from the time they were the only two employees. In 2008, I made an investment offer of $250K for approximately 38% of the company ($400,000 pre-money valuation).

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28