Remove Cap Table Remove Cost Remove Finance Remove Valuation
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The Changing Structure of the VC Industry

Both Sides of the Table

We are in a bubble (with so many private $1bn+ valuations). Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Where are we today? more than 5 years ago?—?and

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

One of my favorite lines in buried in the middle: “I’ve heard enough companies say “we simply can’t cut costs or it will hurt the long-term potential of the business” to get a wry smile. Pragmatic cost cuts are always possible and often productive.” But, as you raise more money at higher valuations, this will normalize.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Yes, via conversion rights at a valuation cap. 2-5x return cap + path to uncapped equity returns. Yes, via conversion rights at a valuation cap. Typically ~3x+ return cap + path to uncapped equity returns. “A That said, nothing is cost-free. More complex cost of capital calculation.

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What’s a Fair 409A Discount?

VC Adventure

However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. Over night a cottage industry was created to conduct these valuations. So what should this discount be?

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Need money? Read this!

Berkonomics

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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Venture Capitalists Will Overpay For Seed Rounds But For Reasons You Likely Haven’t Considered

Hunter Walker

So when I tell you what I’m seeing in venture financing these days if you disagree with me, it might just be that we’re touching different parts of the elephant. Semil asserts, Seed-stage valuations have generally been left-unchanged, and I could argue even they’ve gone up since the beginning of 2022. It’s just math.

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Making Decisions in Context

Austin Startup

Your Cap Table is something that deserves constant care and attention. Keep the valuations consistent with company progress. Messy cap tables can come back to haunt you when you do a financing or sell the company. Can you acquire them at a sustainable cost? Are the logistics manageable?