Pascal's View

JULY 9, 2017

The easiest way to do so is via SAFE notes, due to their simplicity, “available online” documentation, no major covenants established to protect the investors, no governance implications at the board level, etc. All of these items are postponed until the elusive priced equity round. It’s going to be great!”.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Startup Professionals Musings

AUGUST 29, 2018

Startup investors have no insight to management or governance. Professional investors like to keep tight control of capitalization tables and all stock owners, to facilitate their own payoff when a sale, merger, or public stock offering is held. Payoff after a liquidity event is difficult and unpredictable.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

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. The typical Silicon Valley term sheet does not include such terms. This is why the founder and their VC BOD member can still hold onto the illusion that everything is fine.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40