Both Sides of the Table

SEPTEMBER 28, 2014

Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. So money spent should add equity value or create IP that eventually will. If you have raised venture capital and you feel your runway (number of months cash left) is looking low have a conversation with your VC.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

SEPTEMBER 18, 2014

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? A down round? These are all real conversations. What if when you have that conversation you don’t agree? Try doing THAT with equity. And so forth.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Startup Professionals Musings

JANUARY 27, 2012

Define equity type. Venture capitalists and later round investors like the preferred convertible shares. Anti-dilution protection. But some dilution is almost inevitable. This does not mean that if you have eight Angels in your company, you will have to seat all eight of them on your board. Right of first refusal.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Startup Professionals Musings

SEPTEMBER 14, 2010

Define equity type. Venture capitalists and later round investors like the preferred convertible shares. Anti-dilution protection. But some dilution is almost inevitable. This does not mean that if you have eight angels in your company, you will have to seat all eight of them on your board. Right of first refusal.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

OCTOBER 17, 2011

Define equity type. Venture capitalists and later round investors like the preferred convertible shares. Anti-dilution protection. But some dilution is almost inevitable. This does not mean that if you have eight angels in your company, you will have to seat all eight of them on your board. Right of first refusal.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Gust

SEPTEMBER 17, 2014

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? A down round? These are all real conversations. What if when you have that conversation you don’t agree? But lawyers will charge much more for equity.”

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? This ties into this Paul Graham article: [link] /equity. Login if you already have an account.

Equity 40

Equity Employee Founder Cofounder 40