www.readwriteweb.com

DECEMBER 29, 2011

Editor's note: This story is part of a series we call Redux, where we're re-publishing some of our best posts of 2011. This includes things like how liquidation preferences impact future rounds and ultimate liquidity, to why VCs ask to expand an option pool before investing as part of their term sheet.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

Altgate

OCTOBER 8, 2009

Raising Capital: 5 Reasons Convertible Debt Sucks HOT The Collapse of the VC Ecosystem & What It Will Look Like Post Recovery 10 Tips On Negotiating With VCs Dating…er…Fundraising Etiquette The Science & Art of Term Sheet Negotiation HOT How Liquidation Preferences Work HOT How Much Money Should I Raise?

Term Sheet 39

Term Sheet Technical Review Michigan Liquidation Preference 39

Tim Keane

JANUARY 12, 2010

.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference. Second a liquidation preference and a participation.   First , dividends.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Altgate

JANUARY 5, 2009

Tips: $75 Killver VC Pitch Deck Not much to learn here. That’s actually about what I would have guessed had I not seen the Google Analytics numbers. Share and Enjoy: This entry was posted in Current Affairs , Entrepreneurship , Green Business , Management , Startups , Technology , Venture Capital , Venture Debt and tagged top posts.

Technical Review 28

Technical Review Due Diligence Term Sheet Liquidation Preference 28

Scott Edward Walker

APRIL 22, 2012

In Fenwick & West’s 2011 Seed Financing Survey (the “Fenwick Survey”), the percentage of convertible note seed financings that granted a discount to investors was 67% in 2010 and 83% in 2011; and the median discount was 20% in both 2010 and 2011. million in 2011. What is a Conversion Valuation Cap?

Pre-Money Valuation 72

Pre-Money Valuation Finance Liquidation Preference Founder 72

ithacaVC

FEBRUARY 23, 2011

As the investors’ aggregate liquidation preference (ALP) increases typically the need for a MCOP also increases. The ALP is the total amount of $ that preferred stock holders are owed on a sale of the company under their liquidation preferences. Remember VC = OB (see earlier post from February 18, 2011).

Liquidation Preference 55

Liquidation Preference Management Preferred Stock Dividend 55

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← More on Liquidation Preferences Happy Holidays → Where Do Tech VCs Invest? Bookmark the permalink. — Topsy.com [.] This post was mentioned on Twitter by greyhawk and Casper Johansen, News Effect 9.

Liquidation Preference 59

Liquidation Preference Early Stage Venture Capital Later Stage 59

K9 Ventures

JUNE 5, 2015

Almost like boiling a frog the micro-VCs who started out as “super angels” (See my post from 2011 on Investor Nomenclature and the Venture Spiral ) writing $25K – $100K checks with personal money, are now managing funds which are $40M – $140M in size, some with multiple partners and are writing checks which are $750K – $1.5M.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Scott Edward Walker

APRIL 9, 2012

For example, in Fenwick & West’s 2011 Seed Financing Survey (the “Fenwick Survey”), convertible noteholders were granted a Board seat in only 4% of the seed financings; while preferred stockholders were granted a Board seat in 70% of such financings.

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Startup Company Lawyer

JANUARY 31, 2011

On January 28, 2011, Yuri Milner and SV Angel announced that their Start Fund would offer all Y Combinator companies $150K in convertible debt. Optional maturity conversion : into Series AA Preferred Stock based on a $5M valuation. Once again, I don’t know how to get a better deal than this.).

Preferred Stock 60

Preferred Stock Liquidation Preference IPO Common Stock 60

K9 Ventures

MARCH 23, 2011

With some of the recent high cap notes that we have seen in 2010 and 2011, I predict that the mis-alignment of incentives will still be an issue in cases where those caps don’t kick in. It is in essence equivalent to being a Liquidation Preference that is typically seen in a preferred equity financing.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

www.mattbartus.com

DECEMBER 9, 2012

I've just seen many startups unhealthily focus on the valuation versus things such as the liquidation preference or board control. I've just seen many startups unhealthily focus on the valuation versus things such as the liquidation preference or board control. December 2011 (3). October 2011 (1).

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Altgate

DECEMBER 17, 2008

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Geek Quotes The 3X Liquidation Preference Is Back! ← Geek Quotes The 3X Liquidation Preference Is Back! Who knows why…maybe the companies have better stuff to work on.

Liquidation Preference 34

Liquidation Preference Venture Capital Startup 34

Professor VC

APRIL 1, 2010

I had a discussi on with another angel investor a few months ago and he was bragging about the deal he just struck that included a 3X participating liquidation preference. ► 2011. (7). The old Keep It Simple Stupid Principle. Older Post. Subscribe to: Post Comments (Atom). Twitter Updates. Blog Archive. ► 2012. (1).

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Altgate

DECEMBER 18, 2008

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← The 3X Liquidation Preference Is Back! ← The 3X Liquidation Preference Is Back! Bookmark the permalink. How Madoff Made Off → Comments are closed.

Liquidation Preference 28

Liquidation Preference Management Venture Capital Founder 28

aweissman.com

JUNE 5, 2011

Jun 5, 2011. Angel investors, seed investors, micro- VCs , angel lists, secondary markets, no-cap convertible notes, liquidation preferences, etc - these terms and concepts, once arcane, are now discussed and debated openly and with vigor. skip to main | skip to sidebar. aweissman.com. Maximizing the serendipity around you.

Liquidation Preference 29

Liquidation Preference Angel Investor Incubator Early Stage 29

Altgate

MARCH 17, 2009

Raising Capital: 5 Reasons Convertible Debt Sucks HOT The Collapse of the VC Ecosystem & What It Will Look Like Post Recovery NEW 10 Tips On Negotiating With VCs NEW Dating…er…Fundraising Etiquette The Science & Art of Term Sheet Negotiation HOT How Liquidation Preferences Work HOT How Much Money Should I Raise?

Term Sheet 28

Term Sheet Due Diligence Liquidation Preference Dividend 28

dondodge.typepad.com

JANUARY 15, 2011

i also think Leo Dirac's post & presentation on liquidation preferences at Gnomedex was very enlightening as well: [link] regards, - dave mcclure Posted by: Dave | August 12, 2007 at 02:45 AM Thanks Don. Posted by: Jason | August 12, 2007 at 01:23 AM really great post don. startupcto

Equity 40

Equity Employee Dilution Valuation 40

Life Beyond Code

SEPTEMBER 27, 2011

When we were looking to talk to investors, Sramana introduced us to multiple investors and acted as an advisor helping us to navigate complex term sheet clauses like tranche financing and liquidation preferences.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116