Both Sides of the Table

JANUARY 21, 2010

You never got around to agreeing exact equity splits but you had many conversations about it. They’ll invite you out to events in which you’ll meet their other clients, you can get to know them socially and hopefully develop a real mentorship relationship where every conversation is not on the clock.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Tim Keane

JANUARY 12, 2010

Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.   For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

K9 Ventures

MARCH 23, 2011

The typical fix for this problem is to put in a cap in the note for the pre-money price for conversion. Before the era of capped notes, entrepreneurs preferred to do notes because the note essentially deferred the valuation of the company. Every first time founder needs to learn what it means to manage a board.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Feld Thoughts

FEBRUARY 28, 2023

In addition, there are the managing directors as executive bodies. In the VC sector, it is common to introduce a third body in addition to the shareholders’ meeting and the management. However, the lack of a conversion right also has implications for anti-dilution protection: in the U.S., Both samples are bilingual.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Hunter Walker

NOVEMBER 23, 2015

It was clear that Sam was a builder – and one who combined maker chops with thoughtful management. Sometimes they’re more practical – I did a long one on liquidation preferences and how they inflate valuations, right before Sam Altman wrote his blog piece on the same thing.

Engineer 48

Engineer Liquidation Preference AJAX IPO 48

Startup Company Lawyer

JANUARY 9, 2011

However, Ted Wang points out that Series Seed documents are better than capped convertible notes. (I’ve Fred Wilson, while he doesn’t endorse the Series Seed documents, says that Union Square Ventures has never participated in a convertible note deal.

Liquidation Preference 57

Liquidation Preference Finance Preferred Stock Common Stock 57