Both Sides of the Table

FEBRUARY 15, 2016

Let me play open book so you can understand the situation better. So if they’re in the mindset that they’re better off getting their $20 million back versus risking more capital then they may prefer just to sell your company for whatever you can get for it. Are Your Existing Investors Over Their Skis?

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Startup Professionals Musings

JANUARY 27, 2012

Based on my experience, and the book “ Attracting Capital from Angels ” by Brian Hill and Dee Powers, here are some key clauses that any investors expect on the first term sheet for the investment you need: Set the price. Liquidation preference. It prevents the entrepreneur from selling early, at a loss to the investor.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Both Sides of the Table

JANUARY 21, 2010

I think you’ll end up with a newer lawyer who’s trying to build her book of businesses. You need to know how liquidations preferences work. Sure, they’ll take you on. But try getting the time of the A players. You’ll get the scraps. And worst still, you won’t even be her top priority.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

www.readwriteweb.com

DECEMBER 29, 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. This will give you tons of information on all the terms you'll encounter when raising a venture round and how they could impact your deal.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

Startup Professionals Musings

SEPTEMBER 14, 2010

Liquidation preference. In a survey for the above book, angels reported that it takes them an average of 67 days to close, while the average closing time for venture capitalists was 80 days. Angels may want the first right to purchase shares held by the other angels in the deal before they are sold to an outside party.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

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

Gust

OCTOBER 17, 2011

Based on my experience, and the book “ Attracting Capital from Angels ” by Brian Hill and Dee Powers, here are some key clauses that any investors expect on the first term sheet for the investment you need: Set the price. Liquidation preference. It prevents the entrepreneur from selling early, at a loss to the investor.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Pascal's View

DECEMBER 30, 2012

Noam Wasserman, Professor of Entrepreneurship at Harvard Business School, classifies this sequence of inevitable decisions as “ The Founder’s Dilemmas ”, which is the title of his important new book on this topic. Many of these issues come to the foreground once entrepreneurs have raised money from VC’s.

Cofounder 34

Cofounder Liquidation Preference Vesting Equity 34

genylabs.typepad.com

SEPTEMBER 24, 2011

where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. Book Reviews. what kind of stock you are getting. what your rights are. there is a real good chance your stock is not going to be worth much. MBO Partners State of Independence in America Study.

Equity 40

Equity Technical Review San Jose Stock 40

Feld Thoughts

FEBRUARY 28, 2023

Florian aimed to modify the book as little as possible, even if the relevant passages did not correspond 100% to German best practices but were still feasible to implement. However, the challenge in revising the book this way is putting these structures into the context of German law. Hence, the negation is exactly in reverse.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Scott Edward Walker

AUGUST 31, 2011

As the late, great attorney Craig Johnson wrote in the book The Silicon Valley Edge: A Habitat for Innovation and Entrepreneurship : Although start-up lawyers in Silicon Valley draft documents and follow form books. they usually play a much larger role in the businesses being started.

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45

Scott Edward Walker

JULY 27, 2011

A minority stockholder has the right to inspect the corporation’s stock ledger, a list of its stockholders and its other books and records (and to make copies of such items). Rights of Minority Stockholders Below are three significant rights of minority stockholders. 1) Inspection Right.

Delaware 49

Delaware Liquidation Preference Redemption Los Angeles 49

Both Sides of the Table

JULY 19, 2011

One thing I learned from the book is that real estate agents always sell their personal property at higher relative prices than their clients’ properties. I’d rather start where I want to end up and then judge if I want to compromise based on what he comes back with.&#. She way annoyed. They hold out. They wait for a better offer.

Term Sheet 319

Term Sheet PR Liquidation Preference Stock Options 319

SoCal CTO

JULY 13, 2010

At the time, they had just come out with their new book " Rework " had downloaded a copy to my Kindle, but hadn't had a chance to read it yet. liquidation preference. One of the highlights of my trip was a startup dinner which included Jason Fried and David Heinemeier Hansson, the founders of 37signals. Now I have.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175

Both Sides of the Table

MARCH 3, 2013

We talked about Liquidation Preference, Voting Rights, and all of the other valuable terms crowd-funding investors don’t understand. Mr. Christensen has published a new book, “ How Will You Measure Your Life. It will be the next book I read and a bit thank you to Derek Anderson for sending me a copy!

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Both Sides of the Table

JUNE 14, 2010

In fact, I wasn’t in the group duped on my MBA program because I first saw it in Steven Covey’s book, “The 7 Habits of Highly Effective People.&#. That story always stuck with me. Many of you have seen it before. The parable is the same. In every meeting we go into we bring our “young woman&# biases.

Liquidation Preference 343

Liquidation Preference Chicago Operations Partner 343

The Equity Kicker

DECEMBER 30, 2013

His books Black Swan and Fooled by Randomness are must reads for anyone in the investment business. but she will most likely now be sitting behind a $25m liquidation preference and have taken on new investors who want to exit the company for at least $240m (to get 3x on their investment).

Finance 129

Finance Liquidation Preference Valuation Harvest 129

abovethecrowd.com

APRIL 20, 2016

Anything that hints of a down round brings questions about the success metrics that have already been “booked.” If you really want to liberate your own common shares and those of your employees, then you want to convert the preferred to common and remove both the control and the liquidation preference over your shares.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Feld Thoughts

JULY 14, 2015

It usually happens in a later round, when the company is in fact worth much less than the liquidation preference overhang and insiders use a pay-to-play and a low valuation to reset the preferences and the cap table. And developing a reputation for recapping seed rounds is, in my book, silly. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Both Sides of the Table

FEBRUARY 14, 2016

If you really want to understand investment psychology & economics you really need to read the seminal book The Black Swan by Nassim Taleb. It is one of the two most influential books on my thinking about investments. Why do markets adjust so quickly? Why Inside Rounds are Difficult?

Valuation 150

Valuation Down Round Startup Later Stage 150

Life Beyond Code

SEPTEMBER 27, 2011

SM: In September 2008, when the first Entrepreneur Journeys book was released, D.D. Ganguly, CEO of DimDim, suggested that we organized “virtual book readings” over their platform. Through the spring of 2010, we released four volumes of EJ books and continued to experiment with the roundtables, which became increasingly popular.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116