Startup Professionals Musings

AUGUST 29, 2018

In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. Professional investors, and more serious entrepreneurs, are most interested in money for ownership of a portion of the business (equity), and equity crowdfunding is still a small portion of the total (less than 10 percent), but growing.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

Pascal's View

JULY 9, 2017

Unfortunately, what the CEO/founder forgets most often is that the notes have a multiplier effect in the post-money calculation; the more notes and the further the cap is from the new priced equity, the greater the variance between actual and nominal pre- and post-money valuations. It’s going to be great!”.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

abovethecrowd.com

APRIL 20, 2016

The reason these terms can produce returns by themselves is that they set the stage for a rejiggering of the capitalization table at some point in the future. I get that you want to grow and I want you to grow, but let’s internally finance that growth by spending gross margin dollars rather than new dilutive dollars of equity.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40