Gust

SEPTEMBER 29, 2011

Another use of convertible note bridge financing is to make a quick injection of seed capital into a new startup when the investor and entrepreneur already know and trust each other; it’s better than a handshake, but far quicker and easier to complete than a real Series A round.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Both Sides of the Table

SEPTEMBER 18, 2014

But founders these days seem strangely unfocused on finance and on terms that could hurt them even though we fought to the death about these same terms 10 years ago. These are all real conversations. What if when you have that conversation you don’t agree? “But lawyers will charge much more for equity.”

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

K9 Ventures

MARCH 23, 2011

I may be well be in the minority in the Valley to think this way — especially so as a seed stage investor — but I have a strong preference for doing priced equity rounds for funding companies at any stage. Since the financing would likely happen in short order, there was no need to have a valuation cap in the note.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Gust

SEPTEMBER 17, 2014

But founders these days seem strangely unfocused on finance and on terms that could hurt them even though we fought to the death about these same terms 10 years ago. These are all real conversations. What if when you have that conversation you don’t agree? But lawyers will charge much more for equity.” I’m bored of it.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

The Startup Lawyer

FEBRUARY 4, 2011

If an incubator offers your startup $25,000 in exchange for 6% equity, the pre-money valuation is a whopping $391,667. Thus your startup needs to determine the intangible value offered by the incubator (and yes, a $150,000 convertible note with no cap and no conversion discount qualifies as an intangible). Conclusion.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Both Sides of the Table

MAY 15, 2010

Often times when companies raise “bridge” financing (this is money from internal investors. But when the finally convert the debt to equity the round gets filed with the SEC and thus journalists often pick up on it. . Short answer: no. They also avoid Reg D. Advertising clients include: Sony, Microsoft, NBC, and Clicker.

Stealth 285

Stealth SEC Advertising Accredited Investor 285

venturehacks.com

OCTOBER 21, 2010

The rationale behind allocating more of an option pool is often basically “better safe than sorry&# rather than “let’s artificially increase equity stake of investors.&# Given that many companies are doing convertible note bridge financings as their seed round, this seems to come up relatively often.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68