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. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

abovethecrowd.com

FEBRUARY 24, 2015

As these late-stage private companies digest these large fund raises, they are pushing profitability further and further into the future, as well as the proof that their business model actually works. If you want to know if the business model truly hunts, you must pay careful attention. Consider the case of Fab.com.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

Both Sides of the Table

FEBRUARY 14, 2016

Huge funding increases lead to massive wage inflation, rent inflation and thus higher burn rates. Or down rounds might favor earlier-stage investors because the liquidation preferences of later stage investors get reduced. Plus, down rounds trigger anti-dilution provisions. A reversion to the mean should be expected.

Valuation 150

Valuation Down Round Startup Later Stage 150