Both Sides of the Table

SEPTEMBER 15, 2022

But it will be patiently deployed, waiting for a cohort of founders who aren’t artificially clinging to 2021 valuation metrics. So we largely sat out fundings of NFTs or other areas where we didn’t feel like we were the expert or where the valuation metrics weren’t in line with our funding goals. And we’re patient.

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

YoungUpstarts

JULY 31, 2019

But “fundraising debt” comes into the picture when you raise too much too early, diluting your business at the beginning of the venture, with no real plan or unrealistic projections for how your business will scale. This also applies in acquisition conversations.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

David Teten

JANUARY 19, 2021

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC offers you this.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

SEPTEMBER 18, 2014

There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. 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? Your A round? What proof points?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 17, 2014

There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. 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? These are all real conversations.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Tim Keane

JANUARY 12, 2010

. ·       Conversion provisions allowing preferred to convert to common if they choose or upon the closing of an IPO at a specified price.   A full ratchet anti-dilution clause is very unfriendly to entrepreneurs; it requires them to make up the entire difference in price from their own holdings.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Austin Startup

MARCH 26, 2019

These strategies can be useful in increasing initial conversions from your ads and website traffic, but offering large discounts too early in the life of the company will lower your gross margins and CAC, both of which will affect your unit economics and future financing conversations. Will you ship internationally?

Technical Review 49

Technical Review Software Review China Acquisition 49