Both Sides of the Table

JULY 16, 2013

I remember just a decade ago in 2003 when we all laughed at how dumb people in the 90′s were talking about the race to “capture as many eyeballs as possible” before your competition. The company with no revenue and a $150k burn rate that raised $2.5 I have seen much of that behavior over the past 2 years get worse.

Burn Rate 412

Burn Rate Dilution Revenue Valuation 412

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. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

NOVEMBER 4, 2011

There were two distinct classes of employee equity (issued by Intermix and MySpace, respectively) with different valuation and vesting situations—and, most significantly, a $125 million valuation cap applied to the buyout of MySpace equity that was triggered by the acquisition of Intermix. Read on for a fuller explanation. of MySpace, Inc.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

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. Revenue multiple? At an accelerator …. Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153