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More on Liquidation Preferences

Altgate

→ More on Liquidation Preferences Posted on December 16, 2010 by admin A long time ago I had asked a VC about what pre-money valuation he was planning to put in a term sheet he had promised to send over. One of the least understood of these key terms is the liquidation preference.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

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Pre-Money Valuation vs Number of Founders | @altgate

Altgate

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.

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Convertible Note Seed Financings: Econ 101 for Founders

Scott Edward Walker

This post is the second part of a three-part primer on convertible note seed financings. Part 1, entitled “ Everything You Ever Wanted To Know About Convertible Note Seed Financings (But Were Afraid To Ask) ,” addressed certain basic questions, such as (i) what is a convertible note? (ii) What Is a Conversion Discount?

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

But, more importantly, is another point Mark buries later on, which includes an awesome post of his from 2010. I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. Then use the down round to clean up your preference overhang.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

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. Second a liquidation preference and a participation. « Power of Angel Investing in Milwaukee | Main.

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Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

It is 2010. That means that they likely raised money at a particularly high price relative to 2010 prices. That means that the likely have a minimum of $15 million in liquidation preferences. Liquidation preference is the amount of money that an investor gets paid before the common stock (e.g. Reputation.