Both Sides of the Table

JUNE 27, 2021

Shots on Goal Being great as a startup technology investor of course requires a lot of things to come together: You need to have strong insights into where technology markets are heading and where value in the future will be created and sustained You need be perfect with your market timing. I’ve definitely been wrong on market value.

Bankruptcy 294

Bankruptcy Bridge Financing Portfolio Angel Investor 294

Both Sides of the Table

SEPTEMBER 18, 2014

How will the lead determine a value? In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? Revenue multiple?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 17, 2014

How will the lead determine a value? In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Convertible notes were previously used primarily for “inside rounds” in which the existing investors provide you with bridge financing to get to the next round.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

The Startup Lawyer

FEBRUARY 4, 2011

The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. 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).

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Professor VC

APRIL 7, 2011

In cases where it is truly a bridge financing (i.e. So, the next entrepreneur that tries to convince me that a convertible debt is good for everyone, Ill say, "Lets figure out how much money you need to get to a significant milestone, raise the funding, price the round, and work together to build value. Steve Bennet.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

ithacaVC

FEBRUARY 20, 2011

Invest at time X, grow company during time X+8 years, sell company (or less likely IPO) at some point along the way and create value for everyone. It may explain why Fund Y tries to protect itself, via deal terms, from pay to play provisions that would kick in with respect to future financings. And it often is.

Bridge Financing 40

Bridge Financing IPO Pay to Play Finance 40

K9 Ventures

MARCH 23, 2011

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132