Both Sides of the Table

SEPTEMBER 28, 2013

We funded one in 2005 and lost a lot of money. Dilution / valuation. I hate when companies publish too much information about the total stock option allocations, the company valuations, the dilution faced in every round, etc. I wasn’t expecting this much dilution this quickly.” Sorry, brah.” ” Yes.

Startup 417

Startup Dilution San Diego Stock Options 417

Both Sides of the Table

JULY 25, 2011

Founders don’t often think about “primary&# stock vs, “fully diluted&# stock in terms of voting rights. I was significantly wiser by 2005 when I started my second company. I never did. VCs always know the voting thresholds and no number in your term sheet is there by accident. There was no guide.

Liquidation Preference 304

Liquidation Preference Term Sheet Cap Table Participating Preferred 304

This is going to be BIG.

APRIL 20, 2012

If you get people who can actually help you succeed, whatever dilution you take now because of a lower price will pale in compare to what you don't have to take in later rounds because of your progress--and moreover what you will get after a better eventual outcome. I think this is great advice. When I first saw del.icio.us, I didn't get it.

Dilution 148

Dilution Business Model Mobile Entrepreneur 148

Diego Basch

APRIL 27, 2012

At this point it’s become of those diluted, subjective terms like “freedom” or “happiness.” I personally never liked working for big corporations, and that’s the reason I started my company in 2005. When people ask me if they should do a startup, I tell them that I have no idea.

Startup 69

Startup Dilution Restful Founder 69

Both Sides of the Table

APRIL 14, 2010

Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. It is 2010. That means that they likely raised money at a particularly high price relative to 2010 prices.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Pre-Money Valuation 289

Ben's Blog

JULY 16, 2013

3/31/2005: 22.8. If we took too much dilution, we will work with our new investor to make sure that every employee is still highly financially motivated. One would be wrong: 3/31/1995: 21.0. 3/29/1996: 22.3. 3/31/1997: 23.3. 3/31/1998: 30.8. 3/31/1999: 49.7. 3/31/2000: 73.4. 3/30/2001: 26.3. 3/29/2002: 82.5. 3/31/2003: 44.6.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Altgate

DECEMBER 7, 2008

I would have thought the entrepreneurs would have used their own capital to delay dilution. For subsequent ventures, successful entrepreneurs raise venture capital earlier than do first time entrepreneurs. I wouldn’t have expected this. There are many other pearls in this 33 page paper, so I definitely encourage you to read it.

Venture Capital 44

Venture Capital Marketing Dilution Government 44

Ben's Blog

JULY 16, 2013

3/31/2005: 22.8 If we took too much dilution, we will work with our new investor to make sure that every employee is still highly financially motivated. One would be wrong: 3/31/1995: 21.0 3/29/1996: 22.3 3/31/1997: 23.3 3/31/1998: 30.8 3/31/1999: 49.7 3/31/2000: 73.4 3/30/2001: 26.3 3/29/2002: 82.5 3/31/2003: 44.6 3/31/2004: 31.6

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

ConversionXL

AUGUST 30, 2018

At Samsung, user research led the company to redesign its televisions in 2005, doubling their market share in just two years. Your established structure protects the ideas and process from free-wheeling input that can dilute your message. Step 3: Share user research with your team. Where do you keep customer journey maps ?

Design 111

Design Framework Product Development Technical Review 111

Professor VC

JUNE 20, 2011

In looking back at the old financials, at the end of Q2 2005, our cash balance was a whopping $546. offering to invest $75K if we could find another $250K by September 30, 2005. Before the $52M Series D , the $23M Series C , the $15.5M Series B and the $5M Series A , there were angels writing checks with many less 0s.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

www.paulgraham.com

APRIL 28, 2010

November 2005 Venture funding works like gears. Whatkind of anti-dilution protection do they want? The angel now owns 200/1200 shares, or a sixth of thecompany, and all the previous shareholders percentage ownershipis diluted by a sixth. Want to start a startup? Apply for funding by March 3. Few startups get it quite right.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

VC Cafe

OCTOBER 26, 2010

It is said to be a private equity round and at this stage it is unclear if previous investors will be allowed to participate (or just get diluted). PrimeSense was founded in 2005 by Aviad Meizlos, Ofir Sharon, Dmitri Reiss, Alex Shpunt and Tamir Berliner. It operates through a chip inside a regular camera with a CMOS sensor.

Private Equity 111

Private Equity Dilution Valuation Differentiation 111

www.paulgraham.com

OCTOBER 23, 2010

March 2005 (This essay is derived from a talk at the Harvard ComputerSociety.) They get the same kind of stock and get diluted the same amount in futurerounds. So the deals take longer, dilute you more, and imposemore onerous conditions. Want to start a startup? Get funded by Y Combinator. How much stock should they get?

Startup 105

Startup Cofounder Software Stock 105

Startup Lessons Learned

JUNE 19, 2019

In 2005, he retired to focus on giving back, beginning by teaching technology entrepreneurship courses at Stanford, becoming a trustee at the University of Pennsylvania (which he attended undergrad), and funding cancer research with his wife. It was 20 to 30, not 100, because of the dilution from the capital.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159