Common Stock Early Stage Pre-Money Valuation Reputation 
Both Sides of the Table
JULY 22, 2010
I don’t feel that as a VC sneaking in nefarious terms into a term sheet that the entrepreneur doesn’t understand is a good way to build a long-term relationship nor to build a long-term reputation but this does happen and more frequently than we all would like. I turned them down. They were nonplussed. This is a shame.
Both Sides of the Table
SEPTEMBER 5, 2012
As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).” You rarely find full ratchets in early-stage deals any more. That’s not possible.
www.paulgraham.com
APRIL 28, 2010
Some angel groups charge you money to pitch your idea to them.Needless to say, you should never do this. One of the dangers of taking investment from individual angels,rather than through an angel group or investment firm, is that theyhave less reputation to protect. The problems are different in the early stages.
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