Haystack

JULY 4, 2019

Would I hope all founders updated their investors, even if briefly? If a founder I’ve backed simply sends 5-7 bullet points per month with some key stats, metrics, and requests for specific connections and help, then over time I follow their “story” and it becomes a part of my daily vocabulary. Yes, of course.

Early Stage 167

Early Stage Deal Flow Finance Metrics 167

Startup Company Lawyer

AUGUST 31, 2012

One major concern about convertible debt is that it eventually needs to be repaid if another round of financing doesn’t occur. ” If the company didn’t raise a round of financing, the convertible debt would convert into the last round of financing (i.e. Series A) or have to be repaid.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

K9 Ventures

MARCH 23, 2011

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Austin Startup

MAY 17, 2017

Know the difference between a Board Observer, Information Rights, and being a member of the Board of Directors. Most angel investors writing small checks are buying the right to a small portion of the Company, and that’s it. A step up from ‘information rights’ is a Board observer right. Take it seriously.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48