Both Sides of the Table

JUNE 5, 2015

The truth is that I’ve been warning about convertible notes since 2010 it was first declared that “convertible notes have won.” In the old days there usually weren’t convertible notes on early-stage deals and there weren’t party rounds with 20 angels or 6 seed funds. How much is in the option pool?

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

venturehacks.com

FEBRUARY 24, 2010

Two founders works because unanimity is possible, there are no founder politics, interests can easily align, and founder stakes are high post-financing. You can find it here: [link] Reply # Sharel Omer · Jan 18, 2010 Thanks Naval, great post to go back to and remember how to do it right, when there is no specific right.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   A cumulative dividend can get to be very expensive and is not often a feature in early stage terms.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Professor VC

JANUARY 17, 2008

He then went on to say that this type of financing was good for the entrepreneur (vs taking VC money) because they got to keep more of the company. At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool. ► 2010. (7). ► February. (1).

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28